How to make $500 a month from Procter & Gamble stocks ahead of third quarter revenue
Procter & Gamble Company (NYSE:pg) Previously announced the third quarter revenue results The bell will be held on Thursday, April 24th.
Analysts expect the Cincinnati-based company, Ohio, to report quarterly profits at $1.53 per share, up from $1.52 per share in the same period last year. According to data from the Procter & Gamble project, which reports quarterly revenue of $20.15 billion compared to the previous year’s $20.2 billion Gasoline Pro.
On Tuesday, RBC Capital Analyst Nik Modi repeated Procter & Gamble in sector performance ratings, maintaining its $164 price target.
With recent talk around Procter & Gamble, some investors may also be keeping an eye on the potential benefits from the company’s dividends. Currently, Procter & Gamble offers an annual dividend yield of 2.52%. This is a quarterly dividend of $1.06 per share ($4.227 per year).
So how can investors take advantage of dividend yields to pocket a regular $500 per month, $500?
To earn $500 a month or dividends alone, you’ll need to invest around $6,000 a year, or an investment of about $238,222 or about 1,419 shares. For a more modest $100 a month or $1,200 a year, you’ll need $47,678 or about 284 shares.
To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend (in this case $4.227). So, $6,000/$4.227 = 1,419 ($500/month), $1,200/$4.227 = 284 shares ($100/month).
Please note that dividend yields may vary on a rolling basis as dividend payments and stock prices fluctuate over time.
How it works: Dividend yields are calculated by dividing the annual dividend payment by the current price of the stock.
For example, if the stock pays an annual dividend of $2 and is currently priced at $50, the dividend yield would be 4% ($2/$50). However, when the stock price rises to $60, the dividend yield drops to 3.33% ($2/$60). Conversely, if the stock price drops to $40, the dividend yield will rise to 5% ($2/$40).
Similarly, changes to dividend payments can affect yields. If a company increases dividends, if the stock price remains the same, the yields will also increase. Conversely, if dividend payments decrease, yields also decrease.
PG Price Action: Procter & Gamble shares rose 1.3% to close at $167.88 on Tuesday.
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