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

JPMorgan Chase & Co. JPM is scheduled to release earnings results for its third quarter before the opening bell on Oct. 13, 2023.

Analysts expect the bank to report quarterly earnings at $3.87 per share, up from $3.12 per share in the year-ago period. Its revenue is anticipated to surge to $39.64 billion from $32.09 billion in Q3 of last year.

JPMorgan is reportedly accelerating the securitization of billions in its loan portfolio, a move attributed to the anticipation of new U.S. capital requirements for major banks.

With the buzz around JPMorgan ahead of quarterly results, some investors may be eyeing potential gains from the company’s dividends. As of now, JPMorgan offers an annual dividend yield of 2.90%, which is a quarterly dividend amount of $1.05 per share ($4.20 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 $206,876 or around 1,429 shares. For a more modest $100 per month or $1,200 per year, you would need $41,404 or around 286 shares.

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To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend (4.20 in this case). So, $6,000 / 4.20= 1,429 ($500 per month), and $1,200 / 4.20= 286 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.

JPM Price Action: Shares of JPMorgan fell 0.2% to close at $144.77 on Monday.

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