Investing in ASX 200 dividend shares is one way of delivering passive income without having to get a second gig.
Coles Group Ltd (ASX: COL) has a solid record of delivering dividends since it joined the ASX.
Coles, unlike many ASX 200 stocks, has lifted its dividend every year since the onset of COVID-19.
Let's crunch the numbers on how much you would need to invest in Coles shares to receive a $ 100-a-month passive income.
How many Coles shares would get you $100 a month in dividend income?
Starting with the basics, a monthly income of $100 would equate to an annual passive income of $1200.
Coles paid a record interim dividend of 36 cents per share in the first half of FY23. And in the second half of FY22, Coles paid a final dividend of 30 cents per share.
This means that in the past year, Coles has delivered total dividends of 66 cents per share.
In order to have received $1,200 a year, or $100 a month in passive income, you would need to own 1,818 Coles shares.
Coles shares climbed 0.49% in Wednesday's trade to finish at $18.62.
Based on this closing price, buying 1,818 Coles shares would cost you $33,851.16.
What now?
Looking ahead, the team at Citi is predicting Coles will pay total fully franked dividends per share of 69 cents in FY2023.
If you wanted to receive $1,200 annually or $100 a month from Coles shares, you would need to own 1,739 Coles shares.
This would set you back $32,380.18 based on the company's last closing share price.
Coles reported an 11,4% boost in net profit after tax (NPAT) to $616 million in its half-year earnings for FY23 compared to the prior corresponding half.
Morgans is tipping Coles will pay fully franked dividends of 66 cents per share in FY 2023 and FY 2024. This is consistent with the company's total dividends in the last year.
Coles share price snapshot
The Coles share price has climbed 1.53% in the last year.
Coles has a market capitalisation of about $24.8 billion based on its last closing price.