On February 1, 2021, I sold all 55 shares of Washington Prime Group (NYSE:WPG) at $13.45 to purchase 10 shares with KO at $48.26 per share + kept some cash
I've been holding WPG shares since late 2018 It seemed like a nice dividend stock, but later turned out one of the most disastrous stocks in my portfolio, falling from ~$7 per share to way below $1.
Once this stock fell below $1 I bought some more, idea was to go bust or make out like a bandit. Then WPG stock went stock split 9:1, and our 500 shares turned into 55, seems it was a smart enough move to buy additional 260 shares during the March 2020 market crash, if not that the result would be much worst. Anyhow - WPG now is the history in my portfolio.
From the money received I bought additional 10 shares of The Coca-Cola Company (KO) at $48.26 per share. With its quarterly dividend of 0.41 cents per share, this latest buy has a dividend yield of 3.39% and will pay us an additional $4.10 every quarter (before tax). Awesome!
Ko is paying a dividend in the following months: April, July, October, and December
For the rest of the year, we are looking to take $13.94 in dividend income (after tax) from this buy, which is about 0.53% of our $2,600 goal for 2021
We now hold 30 shares of KO, In total, they contribute about $41.82 (after tax) yearly to our dividend income portfolio.
Using dollar-cost averaging our average cost per one KO share is $49.62
By now KO takes 3.62% from our US stock portfolio.
I'm looking to increase the total share count to 100, and then start selling covered calls on KO stock.
Just for the illustration:
We could sell a covered call on KO today (February 1, 2021) with expiry on March 5, 2021 (monthly options), with a strike price of $50, and get for that about $0.89 premium. That about 2.55% potential income return in about 30 days.
Looking to have 100 shares with KO by August 7, 2021
70 shares to go!