How To Earn $500 A Month From Coca-Cola Stock Ahead Of Q4 Earnings

by Avi Kapoor Benzinga Staff Writer

Zinger Key Points

A more conservative goal of $100 monthly dividend income would require 619 shares of Coca-Cola.
An investor would need to own $197,457 worth of Coca-Cola to generate a monthly dividend income of $500.
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The Coca-Cola Company KO will release its fourth-quarter financial results, before the opening bell, on Tuesday, Feb. 11, 2025.

Analysts expect the Atlanta-based company to report quarterly earnings at 52 cents per share, up from 49 cents per share in the year-ago period. Coca-Cola projects quarterly revenue of $10.7 billion, compared to $10.95 billion a year earlier, according to data from Benzinga Pro.

On Jan. 30, Jefferies analyst Kaumil Gajrawala upgraded Coca-Cola from Hold to Buy and raised the price target from $69 to $75.

With the recent buzz around Coca-Cola, some investors may be eyeing potential gains from the company's dividends too. As of now, Coca-Cola offers an annual dividend yield of 3.04%, which is a quarterly dividend amount of 48 cents per share ($1.94 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 $197,457 or around 3,093 shares. For a more modest $100 per month or $1,200 per year, you would need $39,517 or around 619 shares.

To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($1.94 in this case). So, $6,000 / $1.94 = 3,093 ($500 per month), and $1,200 / $1.94 = 619 shares ($100 per month).

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

Price Action: Shares of Coca-Cola gained 0.8% to close at $63.84 on Friday.