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

Exelon Corporation EXC will release its fourth-quarter financial results before the opening bell on Wednesday.

Analysts expect the Chicago-based company to report quarterly earnings at 59 cents per share, down from 60 cents per share in the year-ago period. Exelon projects quarterly revenue of $4.74 billion, compared to $5.37 billion a year earlier, according to data from Benzinga Pro.

On Jan. 21, Evercore ISI Group analyst Durgesh Chopra upgraded Exelon from In-Line to Outperform and raised the price target from $43 to $44.

With the recent buzz around Exelon, some investors may be eyeing potential gains from the company's dividends too. As of now, Exelon offers an annual dividend yield of 3.64%, which is a quarterly dividend amount of 38 cents per share ($1.52 a year).

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

Next, we take this amount and divide it by Exelon's $1.52 dividend: $6,000 / $1.52 = 3,947 shares.

So, an investor would need to own approximately $164,985 worth of Exelon, or 21,429 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 / $1.52 = 789 shares, or $32,980 to generate a monthly dividend income of $100.

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.

EXC Price Action: Shares of Exelon gained by 1.2% to close at $41.80 on Monday.

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