How To Earn $1,000 Per Month From Verizon Communications Inc. Stock

American telecom giant Verizon Communications Inc. VZ stock closed at $37.33 on Dec. 12. In the preceding 52-week trading period, Verizon’s stock price fluctuated between a high of $44.73 to a low of $30.135. 

According to the company's 10-Q filing in the last week of October, Verizon's dividend expense for the first nine months of 2023 is $8.2 billion with a dividend yield of 7.24%. For the quarter ending in September, the dividend per share was $0.665 compared to $0.6525 per share for the same quarter last year.

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How Can You Earn $1,000 Per Month As A Verizon Investor?

If you want to make $1,000 per month — $12,000 annually — from Verizon’s dividends, your investment value must be approximately $165,746, which is 4,440 shares at $37.33 per share. Alternatively, if you want to earn a moderate sum of $200 per month, your investment value drops to $33,149 or 889 shares.

Understanding dividend yield calculations: To estimate the investment value, you need two variables — the desired annual income ($12,000 or $2,400) and the dividend yield, which is 7.24% in this case. So, $12,000 / 0.0724 = $165,746 to generate an income of $1,000 per month, and $2,400 / 0.0724 = $33,149 for $200 per month.

You can calculate the dividend yield by dividing the annual dividend payments by the current price of the stock. 

The dividend yield can change over time. This is the outcome of fluctuating stock prices and dividend payments on a rolling basis.

For instance, assume a stock that pays $2 as an annual dividend is priced at $50. Its dividend yield would be $2 / $50 = 4%. If the stock price rises to $60, the dividend yield drops to 3.33% ($2 / $60). A drop in stock price to $40 will have an inverse effect and increase the dividend yield to 5% ($2 / $40).

Just like a change in stock price affects the yield, changes in the dividend payment can also impact the yield. Assuming the stock price remains the same, the dividend yield will increase when the company increases the dividend value and vice versa.

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