How To Earn $500 A Month From Pfizer Stock Ahead Of Q3 Earnings

Pfizer Inc. (NYSE:PFE) will release earnings results for the third quarter before the opening bell on Tuesday, Nov. 4.

Analysts expect the health care company to report quarterly earnings at 64 cents per share, down from $1.06 per share in the year-ago period. The consensus estimate for Pfizer's quarterly revenue is $16.52 billion, down from $17.7 billion a year earlier, according to Benzinga Pro.

On Oct. 10, Morgan Stanley analyst Terence Flynn maintained Pfizer with an Equal-Weight and lowered the price target from $33 to $32.

With the recent buzz around Pfizer, some investors may be eyeing potential dividend gains. As of now, Pfizer offers an annual dividend yield of 6.98%, with a quarterly dividend of 43 cents per share ($1.72 a year).  

So, how can investors exploit its dividend yield to pocket a regular $500 monthly?

To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $85,979 or around 3,488 shares. For a more modest $100 per month or $1,200 per year, you would need $17,206 or around 698 shares.

To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($1.72 in this case). So, $6,000 / $1.72 = 3,488 ($500 per month), and $1,200 / $1.72 = 698 shares ($100 per month).

Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.

How that works: The dividend yield is computed by dividing the annual dividend payment by the stock’s current price.

For example, if a stock pays an annual dividend of $2 and is currently priced at $50, the dividend yield would be 4% ($2/$50). However, if the stock price increases to $60, the dividend yield drops to 3.33% ($2/$60). Conversely, if the stock price falls to $40, the dividend yield rises to 5% ($2/$40).

Similarly, changes in the dividend payment can impact the yield. If a company increases its dividend, the yield will also increase, provided the stock price stays the same. Conversely, if the dividend payment decreases, so will the yield.

PFE Price Action: Shares of Pfizer rose 1.5% to close at $24.65 on Friday.

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