How To Earn $500 A Month From Honeywell International Stock Ahead Of Q1 Earnings

Honeywell International Inc. HON will release its first-quarter financial results before the opening bell on Tuesday, April 29.

Analysts expect the Charlotte, North Carolina-based company to report quarterly earnings at $2.21 per share, down from $2.25 per share in the year-ago period. Honeywell projects quarterly revenue of $9.6 billion, compared to $9.11 billion a year earlier, according to data from Benzinga Pro.

On April 14, Citigroup analyst Andrew Kaplowitz maintained Honeywell with a Buy rating. He also lowered the price target from $253 to $229.

With the recent buzz around Honeywell, some investors may be eyeing potential gains from the company's dividends too. Currently, Honeywell offers an annual dividend yield of 2.27%. That’s a quarterly dividend of $1.13 per share ($4.52 a year).

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

Next, we take this amount and divide it by Honeywell's $4.52 dividend: $6,000 / $4.52 = 1,327 shares.

So, an investor would need to own approximately $264,285 worth of Honeywell, or 1,327 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 / $4.52 = 265 shares, or $52,777 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.

Price Action: Shares of Honeywell fell by 0.8% to close at $199.16 on Friday.