Own Coca-Cola by Sept. 15 to Qualify for the Oct. 1 Dividend. Is the Real Prize Holding Enough Shares for $1,000 in Yearly Passive Income?
Generating sizable dividends from stocks can help achieve passive income goals or supplement income in retirement.
Overview
There are plenty of ways to generate passive income. You could open a high-yield savings account, or buy certificates of deposit, Treasury Bills, bonds, and more. Owning dividend stocks like Coca-Cola (NYSE: KO) can be particularly appealing to long-term investors because of the combination of quarterly dividends and the upside potential of Coke's share price.
Coke's stock price is up 59% over the last five years. But factor in the reinvestment of dividends, and the total return is 82%. Coke offers a middle ground between pure-play passive income vehicles and stocks that don't pay dividends -- giving investors two levers to pull to unlock potential gains.
Details
Coca-Cola will pay a $0.53 per share quarterly dividend on Oct. 1 to shareholders on record as of Sept. 15. The payment marks Coke's third $0.53 cash payment since raising its dividend for the 64th consecutive year. Based on the current annualized payout of $2.12 per share, you'd need 472 shares -- worth $42,174 at the time of this writing -- to generate $1,000 in yearly dividend income.
Source
Originally published at www.fool.com.