The Coca-Cola Company (NYSE:KO) will report third-quarter earnings results before the opening bell on Wednesday, October 23
Analysts expect the Atlanta-based beverage company to report quarterly profit of 74 cents per share. That’s an increase from 67 cents per share in the same period a year ago. Coca-Cola expects to report revenue of $11.6 billion for the latest quarter, up from $11.44 billion a year earlier, according to data from Benzinga Pro.
On October 17, the Coca-Cola Company announced that Bela Bajaria, Chief Content Officer of Netflix Inc., has been elected director.
With the recent buzz surrounding Coca-Cola, some investors may also be looking at potential gains from the company’s dividends. The company offers an annual dividend yield of 2.79%. That’s a quarterly dividend amount of 48.5 cents per share ($1.94 per year).
To figure out how to make $500 monthly from Coca-Cola, let’s start with the annual goal of $6,000 ($500 x 12 months).
We then take this amount and divide it by Coca-Cola’s dividend of $1.94: $6,000 / $1.94 = 3,093 shares
So an investor would need to own about $214,809 worth of Coca-Cola, or 3,093 shares, to generate a monthly dividend income of $500.
Assuming a more conservative goal of $100 per month ($1,200 per year), we perform the same calculation: $1,200 / $1.94 = 619 shares, or $42,990 to generate a monthly dividend income of $100.
View more earnings on KO
Keep in mind that the dividend yield can be constantly changing because the dividend payout and the stock price both fluctuate over time.
The dividend yield is calculated by dividing the annual dividend payment by the current share price. As the stock price changes, the dividend yield will also change.
For example, if a stock pays an annual dividend of $2 and the current price is $50, the dividend yield would be 4%. However, if the stock price rises to $60, the dividend yield drops to 3.33% ($2/$60).
Conversely, if the stock price falls to $40, the dividend yield would increase to 5% ($2/$40).
Additionally, the dividend payout itself can 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 share price remains the same. Likewise, if a company reduces its dividend payout, the dividend yield will fall.
KO price promotion: Shares of Coca-Cola fell 1.4% to close at $69.45 on Monday.
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This article How to Make $500 a Month on Coca-Cola Stock Before Third-Quarter Earnings originally appeared on Benzinga.com
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