How To Earn $500 A Month From 3M Stock Ahead Of Q4 Earnings Print

3M Company MMM is expected to release earnings results for its fourth quarter before the opening bell on Jan. 23, 2024.

Analysts expect the Saint Paul, Minnesota-based company to report quarterly earnings at $2.31 per share on revenue of $7.70 billion, according to data from Benzinga Pro.

3M recently received $34.2 million award to improve treatment of traumatic wounds from point-of-injury to hospital.

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With the recent buzz around 3M, some investors may be eyeing potential gains from the company’s dividends, too. 3M currently offers an annual dividend yield of 5.57% — a quarterly dividend amount of $1.50 per share ($6.00 a year).

Investors can exploit this 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 $107,760 or around 1,000 shares. For a more modest $100 per month or $1,200 per year, you would need $21,552 or around 200 shares.

To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($6.00 in this case). So, $6,000 / $6.00 = 1,000 ($500 per month), and $1,200 / $6.00 = 200 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.

MMM Price Action: Shares of 3M gained 1.2% to close at $107.76 on Friday.

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