How To Earn $500 A Month From Coca-Cola Stock Ahead Of Q3 Earnings

The Coca-Cola Company (NYSE:KO) will release earnings results for its third quarter, before the opening bell on Wednesday, Oct. 23,

Analysts expect the Atlanta-based beverage company to report quarterly earnings at 74 cents per share. That’s up from 67 cents per share in the year-ago period. Coca-Cola projects to report revenue of $11.6 billion for the recent quarter, compared to $11.44 billion a year earlier, according to data from Benzinga Pro.

On Oct. 17, Coca-Cola Company announced that Bela Bajaria, Chief Content Officer for Netflix Inc., has been elected as a director.

With the recent buzz around Coca-Cola, some investors may be eyeing potential gains from the company's dividends, too. The company offers an annual dividend yield of 2.79%. That’s a quarterly dividend amount of 48.5 cents per share ($1.94 a year).

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

Next, we take this amount and divide it by Coca-Cola's $1.94 dividend: $6,000 / $1.94 = 3,093 shares

So, an investor would need to own approximately $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 monthly ($1,200 annually), we do the same calculation: $1,200 / $1.94 = 619 shares, or $42,990 to generate a monthly dividend income of $100.

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 fell by 1.4% to close at $69.45 on Monday.

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