How To Earn $500 A Month From Coca-Cola Stock After Better-Than-Expected Earnings

The Coca-Cola Company KO on Tuesday reported better-than-expected third-quarter financial results and raised full-year guidance.

Coca-Cola reported third-quarter FY23 sales growth of 8% year-on-year to $11.95 billion, beating the analyst consensus estimate of $11.44 billion. Adjusted EPS of $0.74 beat the analyst consensus estimate of $0.69.

Coca-Cola raises FY23 organic revenue growth outlook from 8%-9% to 10%-11%. The company sees comparable currency-neutral EPS growth of 13%-14% (prior 9%-11%).

With Coca-Cola reporting upbeat quarterly earnings, some investors may be eyeing potential gains from the company’s dividends. As of now, Coca-Cola has a dividend yield of 3.31%, which is a quarterly dividend amount of 46 cents a share ($1.84 a year).

To figure out how to earn $500 monthly from Coca-Cola dividends, we start with the yearly target of $6,000 ($500 x 12 months).

Next, we take this amount and divide it by Coca-Cola $1.84 dividend: $6,000 / $1.84 = 3,261 shares

So, an investor would need to own approximately $181,442 worth of Coca-Cola, or 3,261 shares to generate a monthly dividend income of $500.

Assuming a more conservative goal of $100 monthly ($1,200 annually), we do the same calculation: $1,200 / 1.84 = 652 shares, or $36,277 to generate a monthly dividend income of $100.

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Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.

The dividend yield is calculated by dividing the annual dividend payment by the current stock price. As the stock price changes, the dividend yield will also change.

For example, if a stock pays an annual dividend of $2 and its current price is $50, its dividend yield would be 4%. However, if the stock price increases to $60, the dividend yield would decrease to 3.33% ($2/$60).

Conversely, if the stock price decreases to $40, the dividend yield would increase to 5% ($2/$40).

Further, the dividend payment itself can also change over time, which can also impact the dividend yield. If a company increases its dividend payment, the dividend yield will increase even if the stock price remains the same. Similarly, if a company decreases its dividend payment, the dividend yield will decrease.

KO Price Action: Shares of Coca-Cola gained 2.9% to close at $55.64 on Tuesday.

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