Verizon Communications Inc. will release earnings for its first quarter before the opening bell on Monday, April 27.
Analysts expect the company to report quarterly earnings of $1.21 per share. That’s up from $1.19 per share in the year-ago period. The consensus estimate for Verizon’s quarterly revenue is $34.86 billion (it reported $33.48 billion last year), according to Benzinga Pro.
Ahead of quarterly earnings, Barclays analyst Kannan Venkateshwar, on March 31, maintained Verizon with an Equal-Weight rating and raised the price target from $43 to $47.
With the recent buzz around Verizon, some investors may be eyeing potential gains from the company’s dividends too. As of now, Verizon has an annual dividend yield of 5.99%, which is a quarterly dividend amount of 70.75 cents per share ($2.83 a year).
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To figure out how to earn $500 monthly from Verizon, we start with the yearly target of $6,000 ($500 x 12 months).
Next, we take this amount and divide it by Verizon’s $2.83 dividend: $6,000 / $2.83 = 2,120 shares.
So, an investor would need to own approximately $100,106 worth of Verizon, or 2,120 shares to generate a monthly dividend income of $500.
Assuming a more conservative goal of $100 monthly ($1,200 annually), we do the same calculation: $1,200 / $2.83 = 424 shares, or $20,021 to generate a monthly dividend income of $100.
Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.
The dividend yield is calculated by dividing the annual dividend payment by the current stock price. As the stock price changes, the dividend yield will also change.
For example, if a stock pays an annual dividend of $2 and its current price is $50, its dividend yield would be 4%. However, if the stock price increases to $60, the dividend yield would decrease to 3.33% ($2/$60).
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Conversely, if the stock price decreases to $40, the dividend yield would increase to 5% ($2/$40).
Further, the dividend payment itself can also change over time, which can also impact the dividend yield. If a company increases its dividend payment, the dividend yield will increase even if the stock price remains the same. Similarly, if a company decreases its dividend payment, the dividend yield will decrease.
