Make $500 Monthly from Coca-Cola Stock: A Simple Guide

If you're thinking about earning an extra $500 each month through dividends from The Coca-Cola Company (NYSE:KO), let's break down how much you need to invest.

Coca-Cola's Money Snapshot

As of January 18, Coca-Cola's shares were valued at $59.70. The company, with a market value of $258 billion, had been trading between $64.99 and $51.55 in the past 52 weeks.

Checking Out Coca-Cola's Dividend Payouts

In the third quarter of 2023, Coca-Cola declared a dividend of $0.46 per share, a bit more than the $0.44 in the same period of 2022. From January to September 2023, the total dividends were $1.38, up from $1.32 in the previous year.

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Calculating Investments for Desired Dividend Income

To consistently earn $500 monthly from dividends, you'd need to invest around $193,548 based on Coca-Cola's current dividend yield of 3.1%. This calculation comes from dividing your annual dividend goal ($6,000) by the yield percentage. For a smaller goal of $200 monthly, the investment would be around $77,419.

Understanding Dividend Yield Changes

Let's see how dividend yield changes with stock prices in a simple example. Imagine a stock that consistently pays an annual dividend of $4. Initially priced at $100, the dividend yield is 4% ($4 divided by $100). If the stock price rises to $120 while the dividend stays at $4, the yield decreases to about 3.33% ($4 divided by $120). If the stock price drops to $80, the yield increases to 5% ($4 divided by $80). This shows the relationship between dividend yield and stock prices, assuming the dividend amount stays the same."

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