Analysts expect the company to report quarterly earnings at 54 cents per share. That’s up from 51 cents per share in the year-ago period. The consensus estimate for quarterly revenue is $4.15 billion (Benzinga Pro estimates that it was $3.89 billion last year). On Oct. 20, JPMorgan analyst Andrea Teixeira maintained Keurig Dr Pepper with an Overweight rating and cut the price target from $39 to $36.
With the recent buzz around Keurig Dr Pepper, some investors may be eyeing potential gains from the company's dividends too. As of now, Keurig Dr Pepper offers an annual dividend yield of 3.34%, with a quarterly dividend of 23 cents per share (92 cents a year).
So, how can investors exploit 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 $179,681 or around 6,522 shares. For a more modest $100 per month or $1,200 per year, you would need $35,925 or around 1,304 shares.
To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($0.92 in this case). So, $6,000 / $0.92 = 6,522 ($500 per month), and $1,200 / $0.92 = 1,304 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.
KDP Price Action: Shares of Keurig Dr Pepper rose 0.6% to close at $27.55 on Thursday.
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