PepsiCo, Inc. (NASDAQ:PEP) will release earnings for its first quarter before the opening bell on Thursday, April 16.

Analysts expect the Purchase, New York-based company to report quarterly earnings of $1.54 per share, up from $1.48 per share in the year-ago period. The consensus estimate for PepsiCo’s quarterly revenue is $18.92 billion (it reported $17.92 billion last year), according to Benzinga Pro.

On Feb. 3, PepsiCo reported better-than-expected fourth-quarter financial results. The soft drink maker also issued FY26 sales guidance above estimates. With the recent buzz around PepsiCo, some investors may be eyeing potential gains from the company's dividends.

PepsiCo Dividend: How To Calculate

Currently, PepsiCo has an annual dividend yield of 3.65%, with a quarterly dividend 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 $164,129 or around 1,054 shares. For a more modest $100 per month or $1,200 per year, you would need $32,857 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.

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 fell 0.1% to close at $155.72 on Tuesday.

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