How To Earn $500 A Month From UWM Holdings Corp Stock

Stocks reacted positively on Wednesday as annual consumer inflation fell to 3% in June, down from May's 4% reading and below estimates of 3.1%. The annual rate of inflation dropped for 12 consecutive months, reaching its lowest point since March 2021.

Following the CPI print, traders revised their expectations for Federal Reserve rate hikes. Post-inflation data release, rate hike expectations for September dropped from 18% to 12%, and for November from 33% to 24%. Read more on the CPI print here.

A final rate hike would bode well for shares of UWM Holdings Corp UWMC, considering the Fed’s rate hikes directly influence lenders like UWM.

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Currently, shares of UWM Holdings are up nearly 76% year-to-date, and have a 6.72% dividend yield. So how can an investor secure $500 per month solely from its dividends?

To earn a steady income of $500 a month from UWM, an investor would need to invest $89,286 or 14,980 shares. For a more modest monthly income of $100, an investment of $17,857 or 2,996 shares would work.

To Calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend yield (0.0672 in this case). So, $6,000 / 0.0672 = $89,286 ($500 per month), and $1,200 / 0.0672 = $17,857 ($100 per month).

How That Works: We find the dividend yield by dividing the annual dividend payment by the stock's current price.

For example, if a stock pays an annual dividend of $2 and is currently priced at $50, the dividend yield would be 4% ($2/$50). However, if the stock price increases to $60, the dividend yield drops to 3.33% ($2/$60). Conversely, if the stock price falls to $40, the dividend yield rises to 5% ($2/$40).

Similarly, changes in the dividend payment can impact the yield. If a company increases its dividend, the yield will also increase, provided the stock price stays the same. Conversely, if the dividend payment decreases, so will the yield.

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