How To Earn $500 A Month From Phillips 66 Stock After Q3 Earnings Report

Phillips 66 PSX, on Friday, reported downbeat earnings for its third quarter.

Phillips 66 reported an adjusted EPS of $4.63 for the third quarter, falling short of the consensus estimate of $4.76. Revenue of $40.23 billion exceeded the consensus of $38.96 billion.

Phillips 66, meanwhile, raised the shareholder distributions target to a range of $13 billion to $15 billion.

With the buzz around Phillips 66 following quarterly earnings, some investors may be eyeing potential gains from the company’s dividends. As of now, Phillips 66 offers an annual dividend yield of 3.60%, 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 $166,893 or around 1,429 shares. For a more modest $100 per month or $1,200 per year, you would need $33,402 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.

PSX Price Action: Shares of Phillips 66 fell 1.1% to close at $116.79 on Friday.

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