How To Earn $500 A Month From Ford Stock As Car Prices Skyrocket

When it comes to the auto industry’s current landscape, prices are soaring and affordability is dwindling.

Former Ford Motor Company F CEO Mark Fields last week on CNBC, drew parallels between the soaring prices in the car market to those of the housing industry. He said that in the current interest rate environment, you “literally you have to make over 100,000 dollars a year just to afford a new car.”

Fields shared further insights, saying that the average new car loan now averages about $760 per month, marking a significant increase of around 35% from 2020 figures. The market is feeling the pinch, with rising prices, tight inventories, and increasing demand.

While these insights are crucial for potential car buyers, investors are looking for a silver lining, particularly when it comes to dividends. What if you could earn $500 a month to put it toward that $760 monthly car payment?

By The Numbers: Ford shares are currently trading at $12.06. With a yield of 4.94%, here's how you can earn $500 a month from the stock:

If you’re looking to earn $500 per month ($6,000 per year), you’d need to buy about 10,071 shares of the Detroit-based company, which would run you about $121,457.

Read also: EXCLUSIVE: Cathie Wood Breaks Down $2,000 Tesla Price Target With Benzinga

For those looking for a more modest monthly dividend income, 2014 shares would yield you $100 per month, and would cost you $24,292.

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

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Photo: Ford