How To Earn $500 A Month From Johnson & Johnson Stock Ahead Of Q2 Earnings

Johnson & Johnson (NYSE: JNJ ) will release its second-quarter earnings report before the opening bell on Wednesday, July 15.

Analysts expect the company to report quarterly earnings of $2.85 per share, up from $2.77 per share in the year-ago period.

The consensus estimate for Johnson & Johnson’s quarterly revenue is $25.06 billion.

It reported $23.74 billion last year, according to Pro.

Ahead of quarterly earnings, RBC Capital analyst Shagun Singh maintained Johnson & Johnson with an Outperform rating on Monday and raised the price target from $265 to $287, while TD Cowen analyst Michael Nedelcovych maintained the stock with a Buy and raised the price target from $250 to $300.

With the recent buzz around Johnson & Johnson, some investors may be eyeing potential gains from the company’s dividends too.

As of now, Johnson & Johnson has an annual dividend yield of 2.08%, which is a quarterly dividend amount of $1.34 per share ($5.36 a 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 $288,445 or around 1,119 shares.

For a more modest $100 per month or $1,200 per year, you would need $57,740 or around 224 shares.

To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($5.36 in this case).

So, $6,000 / $5.36 = 1,119 ($500 per month), and $1,200 / $5.36 = 224 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: The dividend yield is computed 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.

JNJ Price Action: Shares of Johnson & Johnson rose 0.3% to close at $257.77 on Monday.

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