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

Honeywell International Inc. HON is expected to release earnings results for its fourth quarter, before the opening bell on Feb. 1, 2024.

Analysts expect the company to report quarterly earnings at $2.59 per share, versus year-ago earnings of $2.52 per share. The company is projected to report quarterly revenue of $9.7 billion, compared to $9.19 billion in the year-earlier quarter, according to data from Benzinga Pro.

Honeywell announced it will hold its 2024 Annual Shareowners Meeting on May 14, 2024, in a virtual format.

Honeywell International recently agreed to acquire Carrier Global Corporation's CARR Global Access Solutions business for $4.95 billion in an all-cash transaction. Carrier's Global Access Solutions business has approximately 1,200 employees operating in 33 countries.

With the recent buzz around Honeywell, some investors may be eyeing potential gains from the company’s dividends. As of now, Honeywell has a dividend yield of 2.10%, which is a quarterly dividend amount of $1.08 a share ($4.32 a year).

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

Next, we take this amount and divide it by Honeywell’s $4.32 dividend: $6,000 / $4.32 = 1,389 shares

So, an investor would need to own approximately $285,995 worth of Honeywell, or 1,389 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 / $4.32 = 278 shares, or $57,240 to generate a monthly dividend income of $100.

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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.

HON Price Action: Shares of Honeywell gained 1.4% to close at $205.90 on Tuesday.

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