The Coca-Cola Company (NYSE:KO) is set to announce its third-quarter earnings on Tuesday, October 21. Anticipation is high as analysts project earnings of 78 cents per share, a slight increase from 77 cents per share during the same period last year. Meanwhile, revenue estimates are expected to reach $12.41 billion, compared to $11.95 billion in the prior year, according to data from Benzinga Pro.
Recent Developments at Coca-Cola
In a strategic move, Coca-Cola appointed Max Levchin, co-founder of PayPal, to its board of directors on October 16. This appointment reflects the company’s commitment to enhancing its business strategy with expertise from the tech sector.
Investing in Coca-Cola’s Dividends
With Coca-Cola’s rising profile, many investors are considering its dividend potential. Currently, the company offers a quarterly dividend of 51 cents per share, translating to an annual yield of 2.98%. This yield is attractive for those seeking to generate income through dividends.
Calculating Investment for Monthly Earnings
Investors sometimes wonder how to leverage Coca-Cola’s dividends to achieve monthly income. Here’s how you can earn $500 monthly from Coca-Cola stock:
- Annual income target: $6,000
- Required investment: Approximately $201,282 or about 2,941 shares
If your goal is lower, such as earning $100 per month:
- Annual income target: $1,200
- Required investment: Around $40,243 or roughly 588 shares
To determine the number of shares needed, simply divide your desired annual income by the annual dividend payment. In Coca-Cola’s case, the annual dividend is $2.04. For instance:
- $6,000 / $2.04 = approximately 2,941 shares
- $1,200 / $2.04 = approximately 588 shares
Understanding Dividend Yield
The dividend yield is a vital metric that fluctuates with changes in both the stock price and dividend payments. It is calculated by dividing the total annual dividend by the current share price. For example, if Coca-Cola maintains an annual dividend of $2.04 and its stock price rises, the yield will decrease. Conversely, if the stock price falls, the yield increases.
Cocoa-Cola’s Stock Performance
As of the last trading session, Coca-Cola shares closed at $68.44, reflecting a gain of 1.3%. Investors will be closely watching the upcoming earnings report and any potential impacts on share price and dividends.
