How To Earn $500 A Month From Pfizer Stock After Q3 Results

Pfizer Inc PFE reported a loss for the third quarter on Tuesday.

Pfizer reported a quarterly adjusted EPS loss of 17 cents versus a consensus loss of 32 cents, down from an EPS income of 67 cents in Q2 and $1.78 a year ago. The company reported a 42% slump in Q3 sales to $13.23 billion, down from $22.64 billion a year ago, beating the consensus of $12.72 billion.

With the buzz around Pfizer following quarterly earnings, some investors may be eyeing potential gains from the company’s dividends. As of now, Pfizer offers an annual dividend yield of 5.37%, which is a quarterly dividend amount of 41 cents per share ($1.64 a year).

So, how can investors exploit its dividend yield to pocket a regular $500 monthly?

To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $111,819 or around 3,659 shares. For a more modest $100 per month or $1,200 per year, you would need $22,370 or around 732 shares.

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To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($1.64 in this case). So, $6,000 / 1.64= 3,659 ($500 per month), and $1,200 / 1.64 = 732 shares ($100 per month).

Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.

How that works: The dividend yield is computed 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.

PFE Price Action: Shares of Pfizer rose 0.03% to close at $30.56 on Tuesday.

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