Maximizing Dividend Income from Coca-Cola Stock Maximizing Dividend Income from Coca-Cola Stock

Written By Michael Gary Scott


The Coca-Cola Company KO is scheduled to release its fourth-quarter earnings, prior to the opening bell on Feb. 13, 2024.

Analysts anticipate the Atlanta-based company to report quarterly earnings at 49 cents per share, up from year-ago earnings of 45 cents per share. Coca-Cola is projected to report quarterly revenue of $10.68 billion, compared to $10.2 billion in the year-earlier quarter, according to market data.

Barclays analyst Lauren Lieberman, last month, maintained Coca-Cola with an Overweight and raised the price target from $60 to $66.

Coca-Cola India, a branch of the global beverage giant, Coca-Cola Company, recently announced its entry into India’s burgeoning ready-to-drink tea market with the introduction of “Honest Tea” — a subsidiary of the Coca-Cola.

With the recent buzz around Coca-Cola, some investors may be eyeing potential gains from the company’s dividends. As of now, the soft drink giant has a dividend yield of 3.09%, which translates to a quarterly dividend amount of 46 cents a share ($1.84 a year).

To figure out how to earn $500 monthly from Coca-Cola dividends, 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 $1.84 dividend: $6,000 / $1.84 = 3,261 shares

An investor would need to own approximately $194,225 worth of Coca-Cola, or 3,261 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 / $3.92 = 652 shares, or $38,833 to generate a monthly dividend income of $100.

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Please note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.

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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 declined 0.5% to close at $59.56 on Friday.

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