Analysts expect the company to report quarterly earnings of 88 cents per share, up from 82 cents per share in the year-ago period. The consensus estimate for Coca-Cola’s quarterly revenue is $12.93 billion. It reported $12.41 billion last year, according to Benzinga Pro.
Barclays analyst Lauren Lieberman maintained an Overweight rating on Coca-Cola on Oct. 16 and raised the price target from $93 to $98.
With the recent buzz around Coca-Cola, some investors may be eyeing potential gains from the company’s dividends too. Currently, Coca-Cola has an annual dividend yield of 2.29%, with quarterly dividends of 53 cents per share ($2.12 a year).
So, how can investors use its dividend yield to pocket a regular $500 monthly?
To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $262,369 or around 2,830 shares. For a more modest $100 per month or $1,200 per year, you would need $52,474 or around 566 shares.
To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($2.12 in this case). So, $6,000 / $2.12 = 2,830 shares ($500 per month), and $1,200 / $2.12 = 566 shares ($100 per month).
Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.
How that works: The dividend yield is computed by dividing the annual dividend payment by the stock’s current price.
For example, if a stock pays an annual dividend of $2 and is currently priced at $50, the dividend yield would be 4% ($2/$50). However, if the stock price increases to $60, the dividend yield drops to 3.33% ($2/$60). Conversely, if the stock price falls to $40, the dividend yield rises to 5% ($2/$40).
Similarly, changes in the dividend payment can impact the yield. If a company increases its dividend, the yield will also increase, provided the stock price stays the same. Conversely, if the dividend payment decreases, so will the yield.
KO Price Action: Shares of Coca-Cola fell 2.8% to close at $92.71 on Friday.
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