Coca-Cola Co. (NYSE:KO) closed extended trading on Dec. 13 at $59.93, experiencing a year-to-date decline of approximately 4.8%. With a current market capitalization of $258.8 billion, the 52-week price range oscillated between $51.55 and $64.99.
This American beverage giant offers investors a dividend yield of 3.14%. In October, the company’s board declared a dividend of $0.46 per share, payable on Dec. 15. According to its 10-Q filing, Coca-Cola disclosed dividend expenses of $4.078 billion for the nine months ending Sept. 29, marking a $168 million increase compared to the same period last year.
How to Achieve $1,000 Monthly Income as a Coca-Cola Investor
For those aiming to generate $1,000 per month, equivalent to $12,000 annually, from Coca-Cola’s dividends, an investment of approximately $382,166 is required. At the current share price of $59.93, this translates to holding about 6,377 shares. However, adjusting the target to $200 per month reduces the investment value to $76,433 or 1,276 shares.
The investment value can be estimated through basic calculations, considering two crucial variables: the desired annual income of $12,000 or $2,400 per month and Coca-Cola’s dividend yield, which stands at 3.14%.
To earn $1,000 per month, the investment needed is close to $382,166 ($12,000 / 0.0314). Alternatively, for a $200 monthly income, the required investment is $76,433 ($2,400 / 0.0314).
A critical note on investment value estimation: Changes in a company’s dividend yield over time may occur due to stock price fluctuations and evolving dividend payments. The calculations above assume no fluctuation in Coca-Cola’s stock price. It’s essential to consider that stock price movements and alterations in a company’s dividend policies can impact the yield.
For instance, if a stock paying a $2 annual dividend is trading at $50, the dividend yield is 4% ($2 / $50). If the stock price rises to $60, the yield decreases to 3.33% ($2 / $60). Conversely, a drop in stock price to $40 increases the yield to 5% ($2 / $40). As stock price changes influence the yield, alterations in a company’s dividend policies also play a role.
