For those of you looking for something other than the soda I apologize for misleading you.
The following is the math behind being paid to drink a coke rather than paying for it out of your paycheck.
Each quarter Coca-Cola pays a dividend to its investors. Currently, they pay $0.40 per share every 3 months just for holding onto the stock. Per year this equates to $1.60 per share.
The stock is currently trading in the $45.00 dollar range. If you pull up a stock chart you’ll be able to see the price has dropped over the past three months. This is a good thing if you don’t already own the stock. I usually geek out when the price is down. Means I can pick up the same stock on sale and lower my average cost of those shares.
The price is different from the above picture due to the fact not all sites reflect the costs after the stock market closes at 4:00pm.
Math behind letting the business buy the coke for you.
Price may vary on location but for this example I’ll use the $1.60 it costs at my job. As you’ve seen in the example above it takes 1 share of KO to be paid enough for 1 coke per year.
You are probably like most humans and consume a little more than 1 a year so let’s figure out how to get the same result with 1 coke per week for 52 weeks.
52 weeks X $1.60 = $83.20.
$83.20/ current dividend paid out. ($1.60) = 52 shares.
Didn’t intend for the number of weeks to equal the number of shares needed but hey math be like that sometimes.
Now that we know it’ll take 52 shares to have them pay for your coke each week, we need to figure out the cost!
On Robinhood the price ended Friday at $45.35 per share.
$45.35 X 52 shares = $2,358.20.
Now you understand the desire to purchase shares when the price drops below normal.
Those who appreciate coke and have no idea what to do with their tax returns this year should consider investing. Also disclaimer, do your own research. Not a financial advisor. This is not an advertisement for Coca-cola. Drink coke responsibility.
The price is the stock has risen over the years and has remained consistent on dividend raises making it an attractive company to hang onto. This is why I love investing with Robinhood. If you’d like to check out their commission free platform click below. We both get a free stock if you sign up. No pressure or anything. 😉