Bank of America Corporation (NYSE: BAC) will release first quarter financial results previously The bell will be held on Tuesday, April 15th.
Analysts expect the bank to increase its quarterly profit of 82 cents per share from 76 cents per share in the same period last year. Bank of America Projects quarterly revenues were $269.1 billion, compared to $25.82 billion in the previous year. Benzinga Pro.
On April 7, Morgan Stanley analyst Betsy Glasek upgraded Bank of America from comparable weights to overweight, but his price target was reduced from $56 to $47.
With recent talk around Bank of America, some investors may also be keeping an eye on the potential benefits from the company’s dividends. Currently, Bank of America offers an annual dividend yield of 2.89%. This is a quarterly dividend of 26 cents per share ($1.04 a year).
Start with your annual target of $6,000 ($500 x 12 months) to figure out how to make $500 a month from Bank of America.
Next, take this amount and divide it into Bank of America’s $1.04 dividend of $6,000/$1.04 = 5,769 shares.
Therefore, investors should own Bank of America, or 5,769 shares worth around $207,396, to earn $500 a month.
Assuming a more conservative goal of $100 a month ($1,200 a year), we do the same calculation: $1,200/$1.04 = 1,154 shares, or $41,486 to generate monthly dividend income.
Please note that dividend yields may vary on a rolling basis. Both dividend payments and stock prices fluctuate over time.
Dividend yields are calculated by dividing the annual dividend payment by the current stock price. When the stock price changes, the dividend yields also change.
For example, if the stock pays an annual dividend of $2 and the current price is $50. This means that the dividend yield is 4%. However, if the stock price rises to $60, the dividend yield drops to 3.33% ($2/$60).
Conversely, if the stock price drops to $40, the dividend yield increases to 5% ($2/$40).
Furthermore, the dividend payment itself can change over time, which can also affect dividend yields. If the company increases dividend payments, dividend yields will increase even if the stock price remains the same. Similarly, if a company reduces dividend payments, dividend yields decrease.
BAC Price Action: Bank of America stocks rose 0.3% to close at $35.95 on Friday.
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