PepsiCo, Inc. (NASDAQ:PEP) will release earnings for its fourth quarter before the opening bell on Tuesday, Feb. 3.



Analysts expect the company to report quarterly earnings of $2.24 per share. That’s up from $1.96 per share in the year-ago period. The consensus estimate for PepsiCo's quarterly revenue is $28.97 billion (it reported $27.78 billion last year), according to Benzinga Pro.



Ahead of quarterly earnings, UBS analyst Peter Grom, on Jan. 14, maintained PepsiCo with a Buy and lowered the price target from $172 to $170.



With the recent buzz around PepsiCo, some investors may be eyeing potential gains from the company's dividends too. As of now, PepsiCo has an annual dividend yield of 3.70%, with a quarterly dividend of $1.4225 per share ($5.69 per 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 $161,926 or around 1,054 shares. For a more modest $100 per month or $1,200 per year, you would need $32,416 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: Compute the dividend yield 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 by 3.3% to close at $153.63 on Friday.



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PepsiCo, Inc. (NASDAQ:PEP) is set to release its Q4 earnings on Feb. 3, with analysts expecting earnings of $2.24 per share and revenue of $28.97 billion. The company offers a 3.70% annual dividend yield, allowing investors to earn $500 monthly with an investment of approximately $161,926. UBS analyst Peter Grom maintains a Buy rating but lowered the price target from $172 to $170. PepsiCo shares rose 3.3% to close at $153.63 on Friday.

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How To Earn $500 A Month From PepsiCo Stock Ahead Of Q4 Earnings