Johnson & Johnson (NYSE:JNJ) will release earnings for the fourth quarter before the opening bell on Wednesday, Jan. 21.
Analysts expect the company to report fourth-quarter earnings of $2.47 per share. That’s up from $2.04 per share in the year-ago period. The consensus estimate for Johnson & Johnson’s quarterly revenue is $24.16 billion (it reported $22.52 billion last year), according to Benzinga Pro.
As per the recent news, Johnson & Johnson, on Jan. 14, shared topline results from the investigational Phase 3 MajesTEC-9 study of Tecvayli (teclistamab-cqyv) monotherapy for multiple myeloma, a type of blood cancer.
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With the recent buzz around Johnson & Johnson, some investors may be eyeing potential gains from the company’s dividends too. As of now, Johnson & Johnson has an annual dividend yield of 2.38%, which is a quarterly dividend amount of $1.30 per share ($5.20 a year).
To figure out how to earn $500 monthly from Johnson & Johnson, we start with the yearly target of $6,000 ($500 x 12 months).
Next, we take this amount and divide it by Johnson & Johnson’s $5.20 dividend: $6,000 / $5.20 = 1,154 shares.
So, an investor would need to own approximately $252,334 worth of Johnson & Johnson, or 1,154 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 / $5.20 = 231 shares, or $50,510 to generate a monthly dividend income of $100.
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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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.
