How To Earn $500 A Month From Genpact Stock Ahead Of Q2 Earnings Report

Genpact Limited G is set to release earnings results for its second quarter, after the closing bell on Thursday.

Analysts expect the Hamilton, Bermuda-based company to report quarterly earnings at 72 cents per share, compared to 72 cents per share in the year-ago period. Genpact projects to report quarterly revenue of $1.14 billion for the quarter, compared to $1.11 billion a year ago, according to data from Benzinga Pro.

On Aug. 7, Genpact named Sanjeev Vohra as its first chief technology & innovation Officer.

With the recent buzz around Genpact, some investors may be eyeing potential gains from the company's dividends too. As of now, Genpact offers an annual dividend yield of 1.89%, which is a quarterly dividend amount of 15.25 cents per share (61 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 $317,506 or around 9,836 shares. For a more modest $100 per month or $1,200 per year, you would need $63,495 or around 1,967 shares.

To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($0.61 in this case). So, $6,000 / $0.61 = 9,836 ($500 per month), and $1,200 / $0.61 = 1,967 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.

G Price Action: Shares of Genpact fell 0.1% to close at $32.28 on Wednesday.

Read More:

• Wall Street’s Most Accurate Analysts Give Their Take On 3 Consumer Stocks Delivering High-Dividend Yields

Photo: Shutterstock