How To Earn $500 A Month From Citigroup Stock Ahead Of Q4 Earnings Report

Citigroup Inc. C is expected to release earnings results for its fourth quarter before the opening bell on Jan. 12, 2024.

Analysts expect the New York-based bank to report quarterly earnings at 88 cents per share on revenue of $18.80 billion, according to data from Benzinga Pro. On Wednesday, BMO Capital analyst James Fotheringham downgraded Citigroup from Outperform to Market Perform, while HSBC upgraded the stock from Hold to Buy on Tuesday.

Citigroup reportedly plans to launch its fully-owned China investment banking unit by the close of this year and aims to recruit approximately 30 individuals for the venture.

With the recent buzz around Citigroup, some investors may be eyeing potential gains from the company’s dividends too. As of now, Citigroup offers an annual dividend yield of 3.92%, which is a quarterly dividend amount of 53 cents per share ($2.08 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 $152,963 or around 2,885 shares. For a more modest $100 per month or $1,200 per year, you would need $30,593 or around 577 shares.

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To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($2.08 in this case). So, $6,000 / $2.08 = 2,885 ($500 per month), and $1,200 / $2.08 = 577 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.

C Price Action: Shares of Citigroup fell 0.9% to close at $53.02 on Wednesday.

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