Ford Motor Company (NYSE:F) is set to release earnings results for its first quarter on April 24.
Analysts expect the Dearborn, Michigan-based company to report quarterly earnings at 42 cents per share, down from 63 cents per share in the year-ago period. Ford is projected to report quarterly revenue of more than $40.2 billion, compared to $36 billion in the year-earlier period, according to data from Benzinga Pro.
Some investors may be eyeing potential gains from the company’s dividends. As of now, Ford has a dividend yield of 4.98%, which is a quarterly dividend amount of 15 cents a share (60 cents a year).
To figure out how to earn $500 monthly from Ford, we start with the yearly target of $6,000 ($500 x 12 months).
Next, we take this amount and divide it by Ford’s dividend: $6,000 / $0.60 = 10,000 shares
So, an investor would need to own approximately $120,400 worth of Ford, or 10,000 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 / $0.60 = 2,000 shares, or $24,080 to generate a monthly dividend income of $100.
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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).
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, which can also impact the dividend yield. If a company increases its dividend payment, the dividend yield will increase even if the stock price remains the same. Similarly, if a company decreases its dividend payment, the dividend yield will decrease.
F Price Action: Ford shares fell 0.4% to close at $12.04 on Wednesday after it recalled around 456,565 units of certain compact SUVs and pickup trucks in the U.S.
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Image: Courtesy of Ford