PepsiCo, Inc. (NASDAQ:PEP) will release earnings results for the second quarter, before the opening bell on Thursday, July 17.
Analysts expect the soft drink and snack company to report quarterly earnings at $2.03 per share. It reported $2.28 per share in the previous year. PepsiCo is also projected to report quarterly revenue of $22.3 billion. Compare that to $22.5 billion a year earlier, according to data from Benzinga Pro.
On Tuesday, Barclays analyst Lauren Lieberman maintained PepsiCo with an Equal-Weight rating and lowered the price target from $135 to $132.
With the recent buzz around PepsiCo, some investors may be eyeing potential gains from the company’s dividends too. Currently, PepsiCo offers an annual dividend yield of 4.31%. That’s a quarterly dividend amount of $1.42 per share ($5.69 a year).
To figure out how to earn $500 monthly from PepsiCo, we start with the yearly target of $6,000 ($500 x 12 months).
Next, we take this amount and divide it by PepsiCo’s $5.69 dividend: $6,000 / $5.69 = 1,054 shares.
So, an investor would need to own approximately $141,036 worth of PepsiCo, or 1,054 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 / $5.69 = 211 shares, or $28,234 to generate a monthly dividend income of $100.
Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.
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.
PEP Price Action: Shares of PepsiCo fell by 1.3% to close at $133.81 on Tuesday.
Read More:
Image: Shutterstock
Up Next: Transform your trading with Benzinga Edge’s one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today’s competitive market.
