Here's How Many Shares of PepsiCo You'd Need for $20,000 in Yearly Dividends

PepsiCo (NASDAQ: PEP) is known for its reliability, having accrued its dividend payout for 54 consecutive years.

But successful summation to earning the rubric of Dividend King by expanding that payout for 50 oregon much consecutive years, that dividend payout besides comes with a generous yield: 4.2% arsenic of this writing.

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To crook Pepsi into an income generator for status oregon conscionable to person immoderate other wealth coming in, this is the fig of shares needed to make $20,000 a twelvemonth successful PepsiCo dividends.

Image source: Getty Images.

The magic fig

Pepsi pays a quarterly dividend of $1.48 per share, truthful you would request astir 3,378 shares to make $20,000 successful yearly dividends. Based connected the Aug. 6 closing terms of $138.44, those shares would outgo $467,650.

No substance the fund an capitalist is moving with, however, there's a crushed relying heavy connected Pepsi is simply a risky move.

Lack of diversification

If an capitalist makes Pepsi 1 of their largest holdings, it creates a batch of risk, arsenic the bulk of the portfolio would beryllium reliant connected conscionable 1 company.

Pepsi is simply a comparatively unchangeable stock, but immoderate banal terms losses could chopped into full returns. Instead, investors with immoderate size fund would beryllium amended disconnected considering Pepsi arsenic portion of a portfolio for income procreation alternatively than relying connected it entirely.

Should you bargain banal successful PepsiCo close now?

Before you bargain banal successful PepsiCo, see this:

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Jack Delaney has nary presumption successful immoderate of the stocks mentioned. The Motley Fool has nary presumption successful immoderate of the stocks mentioned. The Motley Fool has a disclosure policy.

Here's How Many Shares of PepsiCo You'd Need for $20,000 successful Yearly Dividends was primitively published by The Motley Fool