How to Earn $500 per Month From (NYSE: NEE) NextEra Energy Stock

NextEra Energy Inc. NEE was priced at $59.30 with a 1.35% gain at the end of the extended trading hours of Dec. 1, 2023. The 52-week price range for NextEra Energy is $47.15 to $88.60.

The American energy company filed its quarterly report for the period July to September 2023 on Nov. 7. The company's dividend expense for the third quarter of 2023 was $946 million ($0.4675 per common share). The cumulative dividend expenses for the nine months ending September 2023 were $2,823 million, 12.60% higher than the dividend payments for the same period last year.

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Earning $500 Per Month With Your NextEra Energy Investment

If you want to earn $500 per month, or $6,000 annually, from NextEra Energy dividends, your investment value is roughly $184,615. At $59.30 a share, you will have around 3,113 shares of Exxon. If you are considering a lower earnings target of $100 per month, your investment value reduces to $36,923 or 623 shares.

Calculating your estimated investment value using dividend yields: You can determine an approximate investment value based on two parameters. The first is your desired annual income. The second is the dividend yield of the stock. The dividend yield can be calculated by dividing the annual dividend payments by the market price of a stock. 

If you want to earn $500 per month, your investment value will be $6,000 annually divided by the dividend yield of 3.25% ($6000/0.0325 = $184,615). When the earnings expectation is $100 per month or $1,200 per year, the calculation is $1,200/0.0325 or $36,293.

Important note when estimating investment value: The dividend yield can change over time because of the movement in stock prices or a change in the dividend payments. The above estimations assume that the stock price is constant. If there is a capital appreciation, the dividend yield decreases — the dividend yield and the stock price have an inverse correlation. 

Take a numerical example for clarity. If a stock pays $2 as an annual dividend and is priced at $50, its dividend yield would be $2/$50 or 4%. When the stock price appreciates to $60, the dividend yield declines to 3.33% ($2/$60). When the stock price dips to $40, the dividend yield rises to 5% ($2/$40).

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