How To Earn $500 A Month From Citigroup Stock Ahead Of Quarterly Earnings Report

Citigroup Inc. C is expected to release earnings results for the third quarter on Oct. 13, 2023.

Analysts expect the bank to report quarterly earnings at $1.15 per share, down from year-ago earnings of $1.63 per share. The company’s revenue is expected to come in at $18.2 billion, versus $18.25 billion in the year-ago period.

With Citigroup set to release quarterly earnings, some investors may be eyeing potential gains from the company’s dividends. As of now, Citigroup has a dividend yield of 5.09%, which is a quarterly dividend amount of 53 cents a share ($2.06 a year).

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

Next, we take this amount and divide it by Citigroup’s $2.06 dividend: $6,000 / $2.06 = 2,913 shares

So, an investor would need to own approximately $117,977 worth of Citigroup, or 2,913 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 / 2.06 = 583 shares, or $23,612 to generate a monthly dividend income of $100.

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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.

C Price Action: Shares of Citigroup fell 1.5% to close at $40.50 on Monday.

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