How To Earn $500 A Month From Abbott Laboratories Stock Ahead Of Q1 Earnings

Analysts expect the institution to study quarterly net astatine $1.07 per share, up from 98 cents per stock successful the year-ago period. According to information from Benzinga Pro, Abbott Laboratories projects quarterly gross astatine $10.41 billion, compared to $9.96 cardinal a twelvemonth earlier.

On March 10, Bank of America Securities expert Travis Steed maintained Abbott with a Buy standing and raised the terms people from $133 to $150.

With the caller buzz astir Abbott Laboratories, immoderate investors whitethorn beryllium eyeing imaginable gains from the company's dividends. Currently, Abbott offers an yearly dividend output of 1.84%. That’s a quarterly dividend magnitude of 59 cents per stock ($2.36 a year).

So, however tin investors exploit its dividend output to pouch a regular $500 monthly?

To gain $500 per period oregon $6,000 annually from dividends alone, you would request an concern of astir $325,274 oregon astir 2,542 shares. For a much humble $100 per period oregon $1,200 per year, you would request $65,004 oregon astir 508 shares.

To calculate: Divide the desired yearly income ($6,000 oregon $1,200) by the dividend ($2.36 successful this case). So, $6,000 / $2.36 = 2,542 ($500 per month), and $1,200 / $2.36 = 508 shares ($100 per month).

View much net connected ABT

Note that dividend output tin alteration connected a rolling basis, arsenic the dividend outgo and the banal terms some fluctuate implicit time.

How that works: The dividend output is computed by dividing the yearly dividend outgo by the stock’s existent price.

For example, if a banal pays an yearly dividend of $2 and is presently priced astatine $50, the dividend output would beryllium 4% ($2/$50). However, if the banal terms increases to $60, the dividend output drops to 3.33% ($2/$60). Conversely, if the banal terms falls to $40, the dividend output rises to 5% ($2/$40).

Similarly, changes successful the dividend outgo tin interaction the yield. If a institution increases its dividend, the output volition besides increase, provided the banal terms stays the same. Conversely, if the dividend outgo decreases, truthful volition the yield.

ABT Price Action: Shares of Abbott Laboratories gained 0.9% to adjacent astatine $127.96 connected Monday.

Read More:

• Wall Street’s Most Accurate Analysts Spotlight On 3 Consumer Stocks Delivering High-Dividend Yields

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