How To Earn $500 A Month From Philip Morris Stock Ahead Of Q1 Earnings

Philip Morris International Inc. PM will release its first-quarter financial results before the opening bell on Wednesday, April 23.

Analysts expect the company to report quarterly earnings at $1.61 per share, up from $1.50 per share in the year-ago period. According to data from Benzinga Pro, Philip Morris International projects quarterly revenue of $9.14 billion, compared to $8.79 billion a year earlier.

On April 16, Citigroup analyst Simon Hales maintained Philip Morris Intl with a Buy rating and raised the price target from $163 to $180.

With the recent buzz around Philip Morris, some investors may be eyeing potential gains from the company's dividends too. Currently, Philip Morris offers an annual dividend yield of 3.33%. That’s a quarterly dividend of $1.35 per share ($5.40 a year).

To figure out how to earn $500 monthly from Philip Morris, we start with the yearly target of $6,000 ($500 x 12 months).

Next, we take this amount and divide it by Philip Morris $5.40 dividend: $6,000 / $5.40 = 1,111 shares.

So, an investor would need to own approximately $180,182 worth of Philip Morris, or 1,111 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 / $5.40 = 222 shares, or $36,004 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).

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.

PM Price Action: Shares of Philip Morris fell by 0.6% to close at $162.18 on Monday.

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