Analysts expect the snacks and beverages giant to report quarterly earnings at $2.26 per share, down from $2.31 per share in the year-ago period. PepsiCo is expected to announce quarterly revenue of $23.86 billion, compared to $23.32 billion a year earlier, according to data from Benzinga Pro.
On Monday, JP Morgan analyst Andrea Teixeira maintained PepsiCo with a Neutral rating and lowered the price target from $157 to $151.
With the recent buzz around PepsiCo, some investors may be eyeing potential gains from the company's dividends too. As of now, PepsiCo offers an annual dividend yield of 4.04%, which is a quarterly dividend amount of $1.42 per share ($5.69 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 $148,393 or around 1,054 shares. For a more modest $100 per month or $1,200 per year, you would need $29,707 or around 211 shares.
To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($5.69 in this case). So, $6,000 / $5.69 = 1,054 ($500 per month), and $1,200 / $5.69 = 211 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.
PEP Price Action: Shares of PepsiCo rose 0.8% to close at $140.79 on Tuesday.
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