How To Earn $500 A Month From T-Mobile US Stock Ahead Of Q1 Earnings Report

T-Mobile US, Inc. TMUS is set to release earnings results for its first quarter, after the closing bell on April 25, 2024.

Analysts expect the Bellevue, Washington-based company to report quarterly earnings at $1.87 per share, up from $1.58 per share in the year-ago period. T-Mobile US is projected to post revenue of $19.81 billion (roughly the same as the year-earlier quarter, per data from Benzinga Pro).

T-Mobile recently announced $163 Million in completed network upgrades for Arkansas.

With the recent buzz around T-Mobile US, some investors may be eyeing potential gains from the company's dividends, too. T-Mobile US currently offers an annual dividend yield of 1.58% — a quarterly dividend amount of 65 cents per share ($2.60 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 $378,927 or around 2,308 shares. For a more modest $100 per month or $1,200 per year, you would need $75,851 or around 462 shares.

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To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($2.60 in this case). So, $6,000 / $2.60 = 2,308 ($500 per month), and $1,200 / $2.60 = 462 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.

TMUS Price Action: Shares of T-Mobile US rose 0.6% to close at $164.18 on Wednesday.

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