JPMorgan Chase & Co. (NYSE:JPM) will release earnings results for its third quarter, before the opening bell on Thursday, Oct. 10.
Analysts expect the New York-based company to report quarterly earnings at $4.00 per share, down from $4.33 per share in the year-ago period. JPMorgan is projected to report revenue of $41.66 billion, up from $39.64 billion a year earlier, according to data from Benzinga Pro.
JPMorgan Chase’s J.P. Morgan Asset Management penned a deal to enhance its Morgan Money offering through a strategic partnership with GLMX, a global money market trading platform.
With the recent buzz around JPMorgan, some investors may be eyeing potential gains from the company’s dividends too. JPMorgan currently offers an annual dividend yield of 2.37%. That’s a quarterly dividend amount of $1.25 per share ($5.00 a year).
So, how can investors exploit its dividend yield to pocket a regular $500 monthly?
To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $252,900 or around 1,200 shares. For a more modest $100 per month or $1,200 per year, you would need $50,580 or around 240 shares.
To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($5.42 in this case). So, $6,000 / $5.00 = 1,200 ($500 per month), and $1,200 / $5.00 = 240 shares ($100 per month).
Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.
How that works: The dividend yield is computed by dividing the annual dividend payment by the stock’s current price.
For example, if a stock pays an annual dividend of $2 and is currently priced at $50, the dividend yield would be 4% ($2/$50). However, if the stock price increases to $60, the dividend yield drops to 3.33% ($2/$60). Conversely, if the stock price falls to $40, the dividend yield rises to 5% ($2/$40).
Similarly, changes in the dividend payment can impact the yield. If a company increases its dividend, the yield will also increase, provided the stock price stays the same. Conversely, if the dividend payment decreases, so will the yield.
Price Action: Shares of JPMorgan fell 0.1% to close at $210.75 on Tuesday.
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