How To Earn $500 A Month From Motorola Solutions Stock Ahead Of Q4 Earnings

Motorola Solutions, Inc. MSI is expected to release earnings results for its fourth quarter, after the closing bell on Feb. 8, 2024.

Analysts expect quarterly earnings to be $3.63 per share, up from year-ago earnings of $3.6 per share. The Chicago-based company is also projected to report quarterly revenue of $2.82 billion, compared to $2.71 billion in the year-earlier quarter, according to data from Benzinga Pro.

Last month, Deutsche Bank analyst Matthew Niknam initiated coverage on Motorola Solutions with a Buy rating and announced a price target of $350.

With the recent buzz around Motorola Solutions, including its multi-year agreement with Google Cloud to advance safety and security, some investors may be eyeing potential gains from the company’s dividends. As of now, Motorola Solutions has a dividend yield of 1.20%, which is a quarterly dividend amount of 98 cents a share ($3.92 a year).

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

Next, we take this amount and divide it by Motorola Solutions $3.92 dividend: $6,000 / $3.92 = 1,531 shares

So, an investor would need to own approximately $502,061 worth of Motorola Solutions, or 1,531 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 / $3.92 = 306 shares, or $100,347 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.

MSI Price Action: Shares of Motorola Solutions gained 0.8% to close at $327.93 on Wednesday.

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