How To Earn $500 Per Month From Realty Income Stock

Looking to supplement your income with Realty Income O dividends? Aiming for $500 monthly? Here’s how much you need to invest.

Realty Income's Financial Snapshot

As of Jan 17, Realty Income's shares were trading at $57.33. The company, with a market cap of $42 billion experienced a 52-week range between $68.85 and $45.04.

Analyzing Realty Income's Dividend Payouts

During the third quarter of 2023, Realty Income announced a dividend of $0.33 per share, a slight decrease from $0.36 in the same period of 2022. The total dividends paid from January to September 2023 were $0.96, compared to $1.07 in the previous year.

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Investment Calculations for Desired Dividend Earnings

To consistently earn $500 per month from dividends, you’ll need to invest around $113,208 based on Realty Income's current dividend yield of 5.3%. This calculation is derived from dividing your annual dividend goal ($6,000) by the yield percentage. For a smaller goal of $200 monthly, the investment would be around $45,283. 

Fluctuations in Dividend Yields

Let’s take a look at how dividend yield is impacted by stock price movements with a straightforward example. Consider a stock that consistently pays an annual dividend of $4. Initially, the stock is priced at $100, resulting in a dividend yield of 4% (calculated as $4 divided by $100). If the stock price rises to $120, while the dividend stays at $4, the yield reduces to approximately 3.33% ($4 divided by $120). On the other hand, if the stock price drops to $80, the yield would increase to 5% ($4 divided by $80). This example illustrates the inverse relationship between dividend yield and stock prices, assuming the dividend amount remains constant.

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