How To Earn $500 Per Month From Verizon (NYSE: VZ) Stock

After a favorable trading session on Nov. 28, American telecom giant Verizon Communications Inc. VZ closed at $37.50 with a market cap of $157.65 billion. 

The 52-week range of Verizon's stock price was $30.135 to $44.73.

Verizon's dividend yield is 7.24%. It paid $8.2 billion in dividends during the nine months from January to September — $100 million higher than the same period last year, according to the company's 10-Q filing on Oct. 26, 

Investment advisers Mairs & Power highlighted bullish views on Verizon in its third-quarter investor report citing the potential long-term benefits from the fixed wireless access opportunity and the government regulations that place barriers to new market entrants. 

Institutional investors like Julius Baer & Co. Ltd. in Zurich, Moneta Group Investment Advisors, Norges Bank, Morgan Stanley MS and Arrowstreet Capital have also increased their holdings in Verizon stock in 2023.

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How Can You Earn $500 Per Month As A Verizon Investor?

If you want to make $500 per month — $6,000 annually — from Verizon's dividends, your investment value needs to be approximately $82,873, which is 2,210 shares at $37.50 each. Alternatively, if you want to earn $100 per month, your investment value drops to $16,575 or 443 shares.

Understanding the dividend yield calculations: When making an estimate, you need two key variables — the desired annual income ($6,000 or $1,200) and the dividend yield ( 7.24% in this case). So, $6,000 / 0.0724 = $82,873 to generate an income of $500 per month and $1,200 / 0.0724 = $16,575  for $100 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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