How To Earn $500 A Month From Philip Morris Stock After Dividend Hike

The board of directors at Philip Morris International Inc. PM on Wednesday upped the company’s regular quarterly dividend by 2.4%, bringing it to an annualized rate of $5.20 per share.

The revised quarterly dividend, now at $1.30 per share, will be payable on Oct. 12 to shareholders who are on record as of Sept. 27. For those considering when to invest, the ex-dividend date is set for Sept. 26

The Dividend Perspective: With volatile share prices being the norm, dividends act as a consistent income source for many long-term shareholders. Here’s how you can earn $500 per month from dividends alone.

By The Numbers: Based on the current share price and its new dividend yield, here’s a look at how an investment in Philip Morris International could pay out:

For a monthly dividend income of $500 ($6,000 annually), an investor would have to hold about 1,181 shares of Philip Morris, and it would run about $112,360. Though, for those eyeing a more modest monthly dividend of $100, you would need 236 shares at $22,472.

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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%. If the stock price increases to $60, the dividend yield would decrease to 3.33% ($2/$60).

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