How to Make $500 a Month on PepsiCo Stock Ahead of Q2 Earnings Report – PepsiCo (NASDAQ:PEP)

PepsiCo, Inc. ENERGY will release its second-quarter financial results before the open of trading on Thursday, July 11.

Analysts are expecting the Purchase, New York-based company to report quarterly earnings of $2.17 per share, up from $2.09 per share in the same period a year earlier. PepsiCo is expected to report revenue of $22.69 billion, up from $22.32 billion a year earlier, according to Benzinga Pro data.

On Monday, BofA Securities analyst Bryan Spillane reiterated a Buy rating on PepsiCo and lowered his price target from $210 to $190.

Given the recent buzz surrounding PepsiCo, some investors may also be looking at potential dividend gains from the company. PepsiCo currently offers an annual dividend yield of 3.34%, which translates to a quarterly dividend amount of $1.355 per share ($5.42 per year).

So how can investors leverage the dividend yield and consistently earn $500 per month?

To earn $500 per month or $6,000 per year in dividends alone, you would need an investment of about $179,467, or about 1,107 shares. To earn a more modest $100 per month or $1,200 per year, you would need $35,829, or about 221 shares.

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To count: Divide the desired annual income ($6,000 or $1,200) by the dividend ($5.42 in this case). So, $6,000 / $5.42 = 1,107 ($500 per month), and $1,200 / $5.42 = 221 shares ($100 per month).

It is important to remember that the dividend yield can be cyclical because both the dividend payout and the stock price fluctuate over time.

How it’s working: The dividend yield is calculated by dividing the annual dividend amount paid by the current share price.

For example, if a stock pays an annual dividend of $2 and is currently trading at $50, the dividend yield will be 4% ($2/$50). However, if the stock price increases to $60, the dividend yield will decrease to 3.33% ($2/$60). Conversely, if the stock price decreases to $40, the dividend yield will increase to 5% ($2/$40).

Similarly, changes in dividend payouts can affect profitability. If a company increases its dividend, profitability will also increase, provided the share price remains the same. Conversely, if the dividend payout decreases, profitability will also decrease.

PEP price action: PepsiCo shares fell 1.4% to close Monday at $162.12.

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