How To Earn $500 Per Month From American Tower Corp. Stock
At the end of the trading session on Feb. 8, American Tower Corp. (NYSE:AMT) closed at $193.64. American Tower Corp. is a real estate investment trust (REIT) that operates in the wireless and broadcasting communication infrastructure business in 25 countries.
On Oct. 26, the company filed its Form 10-Q for the quarter ending Sept. 30. The REIT's capital structure includes mandatorily convertible preferred equity and restricted stock units, which accrue dividends. American Tower has reported dividends for common stockholders as distributions paid on common stock.
The cash flow from financing activities shows $2.193 billion as distribution to common stockholders for the nine months ending Sept. 30 — 12.71% higher than the distributions for the same period of 2022.
American Tower currently pays a quarterly distribution of $1.70 per share, equating to an annualized rate of $6.80 per share. Based on the Feb. 8 close price, its dividend yield is 3.51%.
How Can You Earn $500 Per Month As An American Tower Corp. Investor?
Assuming that your earnings target is $500 per month, or $6,000 annually, from American Tower Corp.'s dividends, you would need to invest an estimated $170,940 which is about 883 shares at $193.64 each. If you want to earn $100 per month, the investment value reduces to $34,188 for about 177 shares.
Don't Miss:
How To Earn $500 Per Month In Passive Income Through Real Estate Without Becoming A Landlord
Collecting passive income from real estate just got a whole lot simpler. A new real estate fund backed by Dara Khosrowshahi gives you instant access to a diversified portfolio of rental properties, and you only need $100 to get started.
How to calculate an estimated investment value using dividend yields: You can calculate an estimated value of investments using two key variables: the desired annual earnings target of $6,000 or $1,200 and the dividend yield of the stock, which is 3.51% in this case). So, $6,000 / 0.0351 = $170,940 to generate an income of $500 per month, and $1,200 / 0.0351 = $34,188 for $100 per month.
To calculate the dividend yield, divide the annual dividend payments by the current price of the stock. Note that a stock’s dividend yield may change because of movement in its prices. Changes in the dividend payments can also impact the yield. Assuming the stock price remains unchanged, the dividend yield will increase when the company increases the dividend value and vice versa.
Assume a stock that pays an annual dividend of $2 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. 8 using an annualized dividend. The price of American Tower Corp. stock at the close of trading on Feb. 8 was $193.64.
Read Next:
Commercial real estate has historically outperformed the stock market, but few investors have the capital or resources needed to invest in this asset class. A platform backed by industry giant Marcus & Millichap is changing that, allowing individuals to invest in commercial real estate with as little as $5,000.
Collecting passive income from real estate just got a whole lot simpler. A new real estate fund backed by Dara Khosrowshahi gives you instant access to a diversified portfolio of rental properties, and you only need $100 to get started.
Image Credit: tony-stoddard on Unsplash
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 American Tower Corp. Stock originally appeared on Benzinga.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
