How To Earn $500 A Month From Bank of America Stock Ahead Of Q2 Earnings
Ahead of Bank of America Corp ‘s (NYSE: BAC ) second-quarter earnings report on Tuesday, July 14, investors are likely eyeing potential dividend gains. Currently, the bank has an annual dividend yield of 1.92% — a quarterly dividend of 28 cents per share ($1.12 a year). So, how can investors use its dividend yield to pocket a regular $500 per month? To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $312,313 or around 5,357 shares. For a more modest $100 per month or $1,200 per year, you would need $62,439 or around 1,071 shares. To Calculate Bank of America Dividends Divide the desired annual income ($6,000 or $1,200) by the dividend ($1.12 in this case). So, $6,000 / $1.12 = 5,357 ($500 per month), and $1,200 / $1.12 = 1,071 shares ($100 per month). Note that dividend yield can change on a rolling basis; the dividend p...
Ahead of Bank of America Corp ‘s (NYSE: BAC ) second-quarter earnings report on Tuesday, July 14, investors are likely eyeing potential dividend gains.
Currently, the bank has an annual dividend yield of 1.92% — a quarterly dividend of 28 cents per share ($1.12 a year).
So, how can investors use its dividend yield to pocket a regular $500 per month? To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $312,313 or around 5,357 shares.
For a more modest $100 per month or $1,200 per year, you would need $62,439 or around 1,071 shares.
To Calculate Bank of America Dividends Divide the desired annual income ($6,000 or $1,200) by the dividend ($1.12 in this case).
So, $6,000 / $1.12 = 5,357 ($500 per month), and $1,200 / $1.12 = 1,071 shares ($100 per month).
Note that dividend yield can change on a rolling basis; the dividend payment and the stock price 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 Bank of America dividends can affect the yield.
If a company increases its dividend, its yield will also increase, provided the stock price remains unchanged.
Conversely, if the dividend payment decreases, so will the yield.
BAC Price Action: Shares of Bank of America fell 2.6% to close at $58.30 on Wednesday.
Analysts expect the bank to report quarterly earnings of $1.12 per share.
That’s up from 89 cents per share a year ago.
The consensus estimate for Bank of America’s quarterly revenue is $30.6 billion.
It reported $26.46 billion last year, according to Pro.
UBS analyst Erika Najarian, on Tuesday, maintained Bank of America with a Buy and raised the price target from $63 to $68.
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