Financial services provider Citigroup Inc. (NYSE:C) was trading at $53.99 at the end of the trading on February 9, 2024.
Citigroup currently pays a quarterly dividend of $0.53 per share, which equates to an annualized rate of $2.12 per share and gives its stock a yield of about 3.93% based on the closing price of $53.99 on February 9th.
How Can You Earn $500 Per Month As A Citigroup Investor?
If you want to earn $500 per month or $6,000 annually from Citigroup’s dividends, your investment value would be approximately $152,672, which is 2,828 shares at $53.99 each. If you opt for an earnings target of $100 per month, your investment value drops to $30,534 or 566 shares.
Don’t Miss:
Calculating the estimated value of investments using dividend yields: You need two key variables to determine your estimated investment value. The first is the desired annual income — $6,000 or $1,200 — and the second is the company’s dividend yield, which is 3.93% in this case. So, $6,000 / 0.0393 = $152,672 to generate an income of $500 per month, and $1,200 / 0.0393 = $30,534 for $100 per month.
To calculate a stock’s dividend yield, divide the annual dividend payments by the current price of the stock. The dividend yield can change over time because of fluctuations in stock prices and the company’s dividend payments on a rolling basis.
Just like a change in stock price affects the yield, changes in the dividend payment can also impact the yield. Assuming the stock price remains the same, the dividend yield will increase when the company increases the dividend value and vice versa.
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 closing price on February 9 using an annualized dividend. The price of Citigroup stock at the end of trading hours on February 9 was $53.99
Read Next:
Image Credit: Shutterstock
Send To MSN: Send to MSN
“ACTIVE INVESTORS’ SECRET WEAPON” Supercharge Your Stock Market Game with the #1 “news & everything else” trading tool: Benzinga Pro – Click here to start Your 14-Day Trial Now!
Get the latest stock analysis from Benzinga?
This article How To Earn $500 Per Month From Citigroup Stock originally appeared on Benzinga.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Source: finance.yahoo.com