Advertisement
U.S. markets closed
  • S&P 500

    5,137.08
    +40.81 (+0.80%)
     
  • Dow 30

    39,087.38
    +90.99 (+0.23%)
     
  • Nasdaq

    16,274.94
    +183.02 (+1.14%)
     
  • Russell 2000

    2,076.39
    +21.55 (+1.05%)
     
  • Crude Oil

    79.81
    +1.55 (+1.98%)
     
  • Gold

    2,091.60
    +36.90 (+1.80%)
     
  • Silver

    23.34
    +0.46 (+2.01%)
     
  • EUR/USD

    1.0839
    +0.0032 (+0.29%)
     
  • 10-Yr Bond

    4.1800
    -0.0720 (-1.69%)
     
  • GBP/USD

    1.2655
    +0.0029 (+0.23%)
     
  • USD/JPY

    150.0640
    +0.0800 (+0.05%)
     
  • Bitcoin USD

    62,173.05
    +793.73 (+1.29%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,682.50
    +52.48 (+0.69%)
     
  • Nikkei 225

    39,910.82
    +744.63 (+1.90%)
     

How To Earn $500 A Month From SPY Stock

The SPDR S&P 500 ETF Trust (NYSE:SPY) has a 52-week high of $459.44 and a 52-week low of $374.77.

The ongoing exit from bear to bull market offers a chance for investors to reassess their investment strategies, one of which could be taking advantage of dividend yields.

That’s where SPY, the S&P 500 ETF, comes into play.

Don’t Miss:


SPY currently has a dividend yield of 1.43%. So how would you yield $500 from it? Potential capital appreciation aside, let's do some math.

To earn $500 a month, or $6,000 annually, with a dividend yield of 1.43%, you would need an investment of about $419,580, which equates to around 921 shares of SPY.

If you’re aiming for a more modest amount, say $100 a month ($1,200 annually), you’d need an investment of approximately $83,916, translating to about 184 shares of SPY.

Here’s how we calculate it: $6,000 / 0.0143 = $419,580 ($500 per month, $6,000 annually). $1,200 / 0.0143 = $83,916 ($100 per month, $1,200 annually).

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 price is $50, its dividend yield would be 4%. If the stock price increases to $60, the dividend yield would decrease to 3.33% ($2/$60).

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.

Read Next:

Photo: Shutterstock

Send To MSN:  0

"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!

This article How To Earn $500 A Month From SPY Stock originally appeared on Benzinga.com

.

© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Advertisement