Pfizer Inc. (NYSE:PFE) stock closed at $27.11 at the end of the trading session on February 14. The 52-week price range is $25.76 and $43.37,
On January 30, the pharma giant released its earnings for the year ending December 31, 2023. During fiscal 2023, the company returned $9.2 billion to shareholders in the form of dividends, or $1.64 per share.
Pfizer currently pays a quarterly dividend of $0.42 per share, equating to $1.68 per share annually and giving its stock a yield of about 6.20% based on the closing price on February 14.
How Can You Earn $1,000 Per Month As A Pfizer Investor?
If you want to earn $1,000 per month — $12,000 annually — from Pfizer’s dividends, you would need to invest an estimated value of approximately $193,548, which is about 7,139 shares at $27.11 each.
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Calculating the estimated value of investments using dividend yields: To calculate an estimated investment value, you have to rely on two parameters — your desired annual income ($12,000) and the dividend yield of the stock, which is 6.20% in this case. So, $12,000 / 0.062 = $193,548 to generate an income of $1,000 per month.
You can determine a stock’s dividend yield by dividing its annual dividend payments by the current price of the stock. The dividend yield is not constant over time because of changes in stock prices and the dividend policies of the company.
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.
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).
Disclaimer: This calculation is according to the price per share on Feb. 14 using an annualized dividend. The price of Pfizer stock at the end of trading on Feb. 14 was $27.11.
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This article How To Earn $1,000 Per Month From Pfizer Stock originally appeared on Benzinga.com
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