How To Earn $500 A Month From American Express Stock Ahead Of Q2 Earnings

American Express Company (NYSE: AXP ) will release its second quarter earnings report before the opening bell on Friday, July 24.

Analysts expect the company to report quarterly earnings of $4.40 per share, up from $4.08 per share in the year-ago period.

The consensus estimate for American Express quarterly revenue is $19.7 billion.

It reported $17.86 billion last year, according to Pro.

On Wednesday, American Express and ALL Accor announced a new global partnership featuring elite status match and points transfer.

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

As of now, AXP has an annual dividend yield of 1.09%, which is a quarterly dividend amount of 95 cents per share ($3.80 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 $550,660 or around 1,579 shares.

For a more modest $100 per month or $1,200 per year, you would need $110,202 or around 316 shares.

To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($3.80 in this case).

So, $6,000 / $3.80 = 1,579 ($500 per month), and $1,200 / $3.80 = 316 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.

AXP Price Action: Shares of American Express fell 0.6% to close at $348.74 on Wednesday.

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