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How To Earn $500 A Month From Ford Stock Ahead Of Q3 Earnings

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How To Earn $500 A Month From Ford Stock Ahead Of Q3 Earnings


Ford Motor Company (NYSE:F) will release earnings results for its third quarter, after the closing bell on Monday, Oct. 28.

Analysts expect the Dearborn, Michigan-based company to report quarterly earnings at 47 cents per share. That’s up from 36 cents per share in the year-ago period. Ford projects to report revenue of $41.88 billion for the recent quarter, compared to $41.22 billion a year earlier, according to data from Benzinga Pro.

In the meantime, investors may be eyeing potential gains from the company’s dividends. Ford currently offers an annual dividend yield of 5.42%. That’s a quarterly dividend of 15 cents per share (60 cents a year).

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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 $110,700 or around 10,000 shares. For a more modest $100 per month or $22,140 per year, you would need $41,805 or around 2,000 shares.

To Calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($0.60 in this case). So, $6,000 / $0.60 = 10,000 ($500 per month), and $1,200 / $0.60 = 2,000 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.

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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.

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Ford Outlook, Price Action: Ford CEO Jim Farley recently explained his intent behind driving the Xiaomi SU7 EV over the past six months in a post on social media on Wednesday. “I try to drive everything we compete against,” Farley said. “Specs can tell part of a story, but you’ve got to get behind the wheel to truly understand and beat the competition.”

Ford shares fell 1.5% to close at $11.07 on Friday.

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Image: Shutterstock

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