- A more conservative goal of $100 monthly dividend income would require 588 shares of Coca-Cola.
- An investor would need to own $205,429 worth of Coca-Cola to generate a monthly dividend income of $500.
- A new wave of value and momentum stocks could be setting up for major moves—and Tim Melvin will name them live this Wednesday. Secure access here.
Analysts expect the beverage company to report quarterly earnings of 84 cents per share, compared to 84 cents per share in the year-ago period. Coca-Cola projects to report quarterly revenue of $12.55 billion, compared to $12.31 billion a year earlier, according to data from Benzinga Pro.
On July 18, Coca-Cola named Luisa Ortega as president of the Europe operating unit effective Sept. 1, succeeding Nikos Koumettis, who will retire in 2026.
With the recent buzz around Coca-Cola, some investors may be eyeing potential gains from the company's dividends. As of now, Coca-Cola offers an annual dividend yield of 2.92%. That’s a semi-annual dividend amount of 51 cents per share ($2.04 a year).
So, how can investors exploit its dividend yield to pocket a regular $500 monthly?
To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $205,429 or around 2,941 shares. For a more modest $100 per month or $1,200 per year, you would need $41,072 or around 588 shares.
To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($2.04 in this case). So, $6,000 / $2.04 = 2,941 ($500 per month), and $1,200 / $2.04 = 588 shares ($100 per month).
Note that dividend yield can change on a rolling basis; the dividend payment and the stock price fluctuate over time.
How that works: The dividend yield is computed by dividing the annual dividend payment by the stock’s current price.
For example, if a stock pays an annual dividend of $2 and is currently priced at $50, the dividend yield would be 4% ($2/$50). However, if the stock price increases to $60, the dividend yield drops to 3.33% ($2/$60). Conversely, if the stock price falls to $40, the dividend yield rises to 5% ($2/$40).
Similarly, changes in the dividend payment can impact the yield. If a company increases its dividend, the yield will also increase, provided the stock price stays the same. Conversely, if the dividend payment decreases, so will the yield.
KO Price Action: Shares of Coca-Cola fell 1.1% to close at $69.85 on Friday.
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