How To Earn $1,000 Per Month From Procter & Gamble Stock
At the end of trading hours on February 13, Procter & Gamble Co. (NYSE:PG) stock sat at $156.27. In the trailing 52 weeks, the stock price fluctuated between $136.10 and $159.83.
P&G currently pays a quarterly dividend of $0.9407 per share, equating to an annualized dividend of $3.7628 per share and giving its stock a yield of about 2.41% based on the stock's closing price on February 13.
How Can You Earn $1,000 Per Month As A Procter & Gamble Investor?
If you want to earn $1,000 per month or $12,000 annually from Procter & Gamble's dividends, you would invest approximately $497,925 for about 3,186 shares at $156.27 each. But, if you opt for an earnings target of $200 per month, the estimated value of your investment drops to $_ for about 637 shares.
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Calculating the estimated investment value using dividend yields: You can rely on two key variables to determine the estimated value of your investments. One is your desired annual earnings target — $12,000 or $2,400 — and the second is the dividend yield of the stock, which is 2.41% in this case. So, $12,000 / 0.0241 = $497,925 to earn an income of $1,000 per month, and $2,400 / 0.0241 = $99,585 for $200 per month.
The fluctuations in stock prices affect the dividend yield. Just like stock price movements can affect the yield, changes in the dividend policies of the company may also impact its yield. Assuming that the stock price remains constant, there is a positive correlation between the yield and the payout. That is, dividend yield will increase when the company increases the payout 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 price per share on February 13 using an annualized dividend. The price of Procter & Gamble stock at the end of trading hours on February 13 was $156.27.
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