How to earn $500 per month from Coca-Cola stock?
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). So, 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.
Shares of public companies that split profits with shareholders by paying cash dividends yield between 2% and 6% a year. With that in mind, putting $250,000 into low-yielding dividend stocks or $83,333 into high-yielding shares will get your $500 a month.
Dividend Data
The Coca-Cola Company's ( KO ) dividend yield is 3.34%, which means that for every $100 invested in the company's stock, investors would receive $3.34 in dividends per year. The Coca-Cola Company's payout ratio is 74.22% which means that 74.22% of the company's earnings are paid out as dividends.
How much is Coca Cola's dividend? KO pays a dividend of $1.87 per share. KO's annual dividend yield is 3.21%. Coca Cola's dividend is higher than the US industry average of 2.73%, and it is lower than the US market average of 4.38%.
To consistently earn $500 per month from dividends, you'll need to invest around $193,548 based on Coca-Cola's current dividend yield of 3.1%.
Some experts recommend withdrawing 4% each year from your retirement accounts. To generate $500 a month, you might need to build your investments to $150,000. Taking out 4% each year would amount to $6,000, which comes to $500 a month.
In a market that generates a 2% annual yield, you would need to invest $600,000 up front in order to reliably generate $12,000 per year (or $1,000 per month) in dividend payments.
Indeed, Coca-Cola has an exceptional track record of consistently increasing its dividend for the past 62 years. Its dividend has increased from 40 cents per share in 2002 to $1.76 per share in 2022, with an annual compounded growth rate of nearly 7.67%.
The Company normally pays dividends four times a year, usually April 1, July 1, October 1 and December 15. Shareowners of record can elect to receive their dividend payments electronically or by check in the currency of their choice.
In many ways for many investors, Coca-Cola (NYSE: KO) is a model dividend stock. The company is a Dividend King, meaning it has raised its shareholder payout at least once annually for a minimum of 50 years. Its current streak stands at a hard-to-conceive 62 straight years.
Who owns the most stock in Coca Cola?
What percentage of Coca-Cola (KO) stock is held by retail investors? According to the latest TipRanks data, approximately 58.42% of Coca-Cola (KO) stock is held by retail investors. Warren Buffett owns the most shares of Coca-Cola (KO).
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The ex-dividend date is the first day the stock trades without its dividend, thus ex-dividend. If you want to get the dividend payment, you need to own the stock by this day. That means you have to buy before the end of the day before the ex-dividend date to get the next dividend. In other words, it's the cut-off date.
If you invested in the company 10 years ago, that decision could have paid off. According to CNBC calculations, a $1,000 investment in Coca-Cola in 2009 would be worth more than $2,800 as of Feb. 15, 2019.
CocaCola Company (The) - Hold
Valuation metrics show that CocaCola Company (The) may be overvalued. Its Value Score of D indicates it would be a bad pick for value investors. The financial health and growth prospects of KO, demonstrate its potential to underperform the market. It currently has a Growth Score of C.
The beverage behemoth ticks off all of the most important boxes for a buy-and-hold investment. Are you looking for a new, all-around sort of pick for your portfolio? If so, take a good long look at The Coca-Cola Company (KO 0.78%).
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Years Invested | Balance At the End of the Period |
---|---|
10 | $102,422 |
20 | $379,684 |
30 | $1,130,244 |
40 | $3,162,040 |
Investing $100 per month, with an average return rate of 10%, will yield $200,000 after 30 years. Due to compound interest, your investment will yield $535,000 after 40 years. These numbers can grow exponentially with an extra $100. If you make a monthly investment of $200, your 30-year yield will be close to $400,000.
A massive passive income stream
Berkshire currently owns 400 million shares of Coca-Cola. This means that on an annualized basis, Warren Buffett's company generates $736 million in dividend income from the beverage giant. That is a huge passive income stream that likely explains why Buffett isn't exiting the position.
What is the highest paying dividend stock that pays monthly?
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- Dividend stocks.
- Dividend index funds or ETFs.
- Bonds and bond funds.
- Real estate investment trusts (REITS)
- Money market funds.
- High-yield savings accounts.
- CDs.
- Buy a rental property.
Cash flow is projected to drop in 2024, but that's mainly because of one-time tax payment issues. The long-term outlook is highly positive for co*ke's cash trends, and so investors can count on further steady dividend growth over the coming years (and decades).
That soft momentum will likely continue into 2024 as well. co*ke is calling for organic sales growth to slow for a second straight year, declining to between 6% and 7% gains in 2024. Investors are hoping that the company can get back to double-digit expansion that includes both rising prices and higher sales volumes.