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

General Motors Company GM is expected to release earnings results for its fourth quarter, before the opening bell on Jan. 30, 2024.

Analysts expect the company to report quarterly earnings at $1.16 per share, down from $2.12 per share in the year-ago period. The company is projected to post revenue of $38.97 billion, compared to $43.11 billion in the year-earlier quarter, according to data from Benzinga Pro.

GM’s luxury brand, Cadillac, is reportedly ramping up production of its Lyriq electric SUV given the better availability of batteries and strong demand for luxury EVs.

With the recent buzz around General Motors, some investors may be eyeing potential gains from the company’s dividends. As of now, General Motors offers an annual dividend yield of 1.02%, which is a quarterly dividend amount of 9 cents per share (36 cents 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 $586,345 or around 16,667 shares. For a more modest $100 per month or $1,200 per year, you would need $117,255 or around 3,333 shares.

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To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($0.36 in this case). So, $6,000 / $0.36 = 16,667 ($500 per month), and $1,200 / $0.36 = 3,333 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.

GM Price Action: Shares of General Motors gained around 0.1% to close at $35.18 on Friday.

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