How To Earn $500 Per Month From WBA Stock

Walgreens Boots Alliance Inc. WBA closed at $20.79, 4.26% higher, at the end of the extended trading hours on Dec 1. The stock has a 52-week trading range of $19.68 to $42.29 and a total market capitalization of $17.96 billion. 

Walgreens Boots Alliance is a holding company that holds ownership interests in subsidiary companies as primary assets. The subsidiaries are in the business of retail pharmacy and healthcare in the U.S. and other countries. Walgreens Boots relies on its operating subsidiaries to fund dividend payments to shareholders. 

The company has a dividend yield of 9.21%. The total cash dividends for fiscal 2023 is $1.7 billion, consistent with the dividends for the preceding year.

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How Can You Earn $500 Per Month As A WBA Investor?

Assuming your target is to make $500 per month or $6,000 annually from Walgreens Boots Alliance's dividends, you need to invest $65,147. At $20.79 per share, this translates to holding 3,133 shares. If you reduce your target to $100 per month or $1,200 annually, the investment value is $13,029 or 627 shares.

Estimating the investment value using dividend yields: Your investment value estimate can be derived using the desired annual income of $6,000 or $1,200 and the dividend yield, which is 9.21%. 

The dividend yield is a percentage calculated by dividing the dividend payments by the market price of a stock. 

To earn $500 per month, your estimated investment value is $6,000 / 0.0921 or $65,147. And if you opt for a moderate $100 monthly income, the investment value is $1,200 / 0.0921 or $13,029.

Important point to remember: When making this estimation, you should note that the dividend yield can change over time. This change can be attributed to the movement in stock prices as well as the dividend payments. These calculations have not considered the capital appreciation in stock price. If those are not factored into the calculation, the dividend value and its yield are positively correlated. 

Assume a stock paying $2 as an annual dividend is trading at $50. The dividend yield would be $2/$50 or 4%. When the stock price jumps to $60, the dividend yield drops to $2/$60 or 3.33%. If the stock price falls to $40, this will trigger an inverse effect and increase the dividend yield to 5% ($2/$40). As fluctuations in stock price impact the yield, changes in the company's dividend policies also affect the yield. 

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