How To Earn $500 A Month From Johnson Controls Stock Following Q4 Earnings Report

Johnson Controls International plc JCI reported results the came in below expectations for its fourth quarter on Tuesday.

Johnson Controls reported fourth-quarter FY23 sales growth of 2.7% year-on-year to $6.91 billion (+2% organically), missing the consensus of $7.09 billion. Adjusted EPS of $1.05 (+6% Y/Y) below the consensus of $1.09, according to Benzinga Pro.

With the recent buzz around Johnson Controls following earnings report, some investors may be eyeing potential gains from the company’s dividends. As of now, Johnson Controls offers an annual dividend yield of 2.78%, which is a quarterly dividend amount of 37 cents per share ($1.48 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 $215,632 or around 4,054 shares. For a more modest $100 per month or $1,200 per year, you would need $43,137 or around 811 shares.

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To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($1.48 in this case). So, $6,000 / $1.48 = 4,054 ($500 per month), and $1,200 / $1.48 = 811 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.

JCI Price Action: Shares of Johnson Controls fell 6% to close at $53.19 on Tuesday.

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