# How To Earn \$500 Per Month From Pepsi Stock

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Looking to supplement your income with Pepsi PEP dividends? Aiming for \$500 monthly? Here’s how much you need to invest.

## Pepsi's Financial Snapshot

As of Jan 19, Pepsi's shares were trading at \$165.78. The company, with a market cap of \$228 billion experienced a 52-week range between \$196.88 and \$155.83.

## Analyzing Pepsi's Dividend Payouts

During the third quarter of 2023, Pepsi announced a dividend of \$1.27 per share, a slight increase from \$1.15 in the same period of 2022. The total dividends paid from January to September 2023 were \$3.58, compared to \$3.32 in the previous year.

## Investment Calculations for Desired Dividend Earnings

To consistently earn \$500 per month from dividends, you’ll need to invest around \$201,342 based on Pepsi's current dividend yield of 2.98%. This calculation is derived from dividing your annual dividend goal (\$6,000) by the yield percentage. For a smaller goal of \$200 monthly, the investment would be around \$80,537.

## Fluctuations in Dividend Yields

Let’s take a look at how dividend yield is impacted by stock price movements with a straightforward example. Consider a stock that consistently pays an annual dividend of \$4. Initially, the stock is priced at \$100, resulting in a dividend yield of 4% (calculated as \$4 divided by \$100). If the stock price rises to \$120, while the dividend stays at \$4, the yield reduces to approximately 3.33% (\$4 divided by \$120). On the other hand, if the stock price drops to \$80, the yield would increase to 5% (\$4 divided by \$80). This example illustrates the inverse relationship between dividend yield and stock prices, assuming the dividend amount remains constant.

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