How To Earn $500 A Month From AT&T Stock Ahead Of Q4 Print

AT&T Inc. T is expected to release earnings results for the fourth quarter before the opening bell on Jan. 24, 2024.

Analysts expect the Dallas-based company to report quarterly earnings at 56 cents per share on revenue of $31.48 billion, according to data from Benzinga Pro.

AT&T’s stock came under pressure last week following a Wall Street Journal report suggesting the Environmental Protection Agency (EPA) sent letters requesting to meet with telecom companies regarding lead-sheathed cables.

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With the recent buzz around AT&T, some investors may be eyeing potential gains from the company’s dividends. As of now, AT&T has a dividend yield of 6.77%, which is a quarterly dividend amount of 27.75 cents a share ($1.11 a year).

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

Next, we take this amount and divide it by AT&T’s $1.11 dividend: $6,000 / $1.11 = 5,405 shares

So, an investor would need to own approximately $88,642 worth of AT&T, or 5,405 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 / $0.96 = 1,081 shares, or $17,728 to generate a monthly dividend income of $100.

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.

T Price Action: Shares of AT&T fell 0.1% to close at $16.40 on Thursday.

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