How To Earn $500 A Month From Cardinal Health Stock Ahead Of Q4 Earnings

Cardinal Health, Inc. CAH expects to release earnings results for its fourth quarter, before the opening bell on Wednesday, Aug. 14.

Analysts expect the Dublin, Ohio-based company to report quarterly earnings at $1.73 per share, up from $1.55 per share in the year-ago period. Cardinal Health is projected to post revenue of $58.64 billion, compared to $53.45 billion a year earlier, according to data from Benzinga Pro.

With the recent buzz around Cardinal Health, some investors may be eyeing potential gains from the company's dividends. As of now, Cardinal Health has a dividend yield of 2.01%. That’s a quarterly dividend amount of 50.56 cents a share ($2.022 a year).

To earn $500 monthly from Cardinal Health, start with the yearly target of $6,000 ($500 x 12 months).

Next, we take this amount and divide it by Cardinal Health's $2.022 dividend: $6,000 / $2.022  = 2,967 shares

So, an investor would need to own approximately $298,688 worth of Cardinal Health, or 2,967 shares to generate a monthly dividend income of $500.

Assuming a more conservative goal of $100 monthly ($1,200 annually), we do the same calculation: $1,200 / $2.022 = 593 shares, or $59,697 to generate a monthly dividend income of $100.

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 decreases to 3.33% ($2/$60).

Conversely, if the stock price decreases to $40, the dividend yield would increase to 5% ($2/$40).

Further, the dividend payment itself can also change over time. This impacts the dividend yield. If a company increases its dividend payment, the dividend yield will increase even if the stock price doesn’t change. Similarly, if a company decreases its dividend payment, the dividend yield decreases.

CAH Price Action: Shares of Cardinal Health gained 1.8% to close at $100.67 on Friday.

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