Pfizer Inc. (NYSE:PFE) closed at $26.57 at the end of trading on Feb. 6. In the preceding 52 weeks, the stock price fluctuated between a low price of $25.76 to a high price of $44.33.
On Jan. 30, the pharmaceutical and biotechnology company released its earnings for the year ending Dec. 31, 2023. During fiscal 2023, the company returned $9.2 billion to shareholders in the form of dividends, or $1.64 per share.
Based on its current quarterly dividend of $0.42 per share, the annualized dividend dividend for Pfizer is $1.68 per share. Using the stock price on Feb. 6, its dividend yield is 6.32%.
How Can You Earn $500 Per Month As A Pfizer Investor?
If you have an earnings target of $500 per month or $6,000 annually from Pfizer’s dividends, your estimated investment value would be $94,936, about 3,573 shares at $26.57 each. If you opt for an earnings target of $100 per month, your investment value drops to around $19,480 or roughly 715 shares.
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Using a stock’s dividend yields for calculating an estimated value of investments: You need two key variables to calculate an estimated value of your investments. One is your desired annual income — $6,000 or $1,200 — and the other is the dividend yield of the stock, which is 6.32% in this case. So, $6,000 / 0.0632 = $94,936 to generate an income of $500 per month, and $1,200 / 0.0632 = $18,987 for $100 per month.
To calculate a stock’s dividend yield, divide its annual dividend payments by the current price of the stock. The dividend yield may change over time. This can be attributed to the movements in stock prices and the changes in dividend payments on a rolling basis.
For instance, assume a stock that pays $2 as an annual dividend is priced at $50. Its dividend yield would be $2 / $50 = 4%. If the stock price rises to $60, the dividend yield drops to 3.33% ($2 / $60). A drop in stock price to $40 will have an inverse effect and increase the dividend yield to 5% ($2 / $40).
Considering the stock price remains unchanged, its dividend yield will increase when the company increases the dividend value and vice versa. So, the dividend yield is positively correlated to the dividend payments.
Disclaimer: This calculation is according to the price per share on Feb. 6 using an annualized dividend. The price of Pfizer stock at the end of trading on Feb. 6 was $26.57.
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This article How To Earn $500 Per Month From Pfizer Stock originally appeared on Benzinga.com
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