How To Make $500 A Month With Pfizer Stock

Pfizer Inc. PFE shares closed higher on Wednesday.

The company is reportedly discontinuing its pharmaceutical sciences small molecule (PSSM) operations at Sandwich in Kent, UK to streamline operations and enhance efficiency.

On Nov. 17, Astellas Pharma and Pfizer announced the FDA approval of a supplemental marketing application for Xtandi (Enzalutamide) for nonmetastatic castration-sensitive prostate cancer with biochemical recurrence at high risk for metastasis.

With the recent buzz around Pfizer, some investors may be eyeing potential gains from the company’s dividends. As of now, Pfizer has a dividend yield of 5.45%, which is a quarterly dividend amount of 41 cents a share ($1.64 a year).

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

Next, we take this amount and divide it by Pfizer's $1.64 dividend: $6,000 / $1.64 = 3,659 shares

So, an investor would need to own approximately $110,063 worth of Pfizer, or 3,659 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 / $1.64 = 732 shares, or $22,019 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.

PFE Price Action: Shares of Pfizer gained 1.3% to close at $30.08 on Wednesday.

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