How To Earn $500 Per Month From Pepsi Stock

Looking to supplement your income with Pepsi PEP dividends? Aiming for $500 monthly? Here’s how much you need to invest.

Pepsi's Financial Snapshot

As of Jan 19, Pepsi's shares were trading at $165.78. The company, with a market cap of $228 billion experienced a 52-week range between $196.88 and $155.83.

Analyzing Pepsi's Dividend Payouts

During the third quarter of 2023, Pepsi announced a dividend of $1.27 per share, a slight increase from $1.15 in the same period of 2022. The total dividends paid from January to September 2023 were $3.58, compared to $3.32 in the previous year.

Don't Miss:

• Investing in real estate just got a whole lot simpler. This Dara Khosrowshahi-backed startup will allow you to become a landlord in just 10 minutes, and you only need $100.
• Commercial real estate has historically outperformed the stock market, but few investors have the capital or resources needed to invest in this asset class. A platform backed by industry giant Marcus & Millichap is changing that, allowing individuals to invest in commercial real estate with as little as $5,000. 

Investment Calculations for Desired Dividend Earnings

To consistently earn $500 per month from dividends, you’ll need to invest around $201,342 based on Pepsi's current dividend yield of 2.98%. This calculation is derived from dividing your annual dividend goal ($6,000) by the yield percentage. For a smaller goal of $200 monthly, the investment would be around $80,537. 

Fluctuations in Dividend Yields

Let’s take a look at how dividend yield is impacted by stock price movements with a straightforward example. Consider a stock that consistently pays an annual dividend of $4. Initially, the stock is priced at $100, resulting in a dividend yield of 4% (calculated as $4 divided by $100). If the stock price rises to $120, while the dividend stays at $4, the yield reduces to approximately 3.33% ($4 divided by $120). On the other hand, if the stock price drops to $80, the yield would increase to 5% ($4 divided by $80). This example illustrates the inverse relationship between dividend yield and stock prices, assuming the dividend amount remains constant.

Read Next:

• Commercial real estate has historically outperformed the stock market, but few investors have the capital or resources needed to invest in this asset class. A platform backed by industry giant Marcus & Millichap is changing that, allowing individuals to invest in commercial real estate with as little as $5,000. 
• Collecting passive income from real estate just got a whole lot simpler. A new real estate fund backed by Dara Khosrowshahi gives you instant access to a diversified portfolio of rental properties, and you only need $100 to get started.

Image Credit: Shutterstock