How to Make $500 a Month With Bank of America Stock Before Q2 Earnings

Bank of America Company (NYSE:BAC) will report its second-quarter financial results ahead of the opening of the bell on Tuesday July 16.

Analysts expect the Charlotte, North Carolina-based company to report quarterly profit of 80 cents per share, down from 88 cents per share in the same period last year. Bank of America is expected to report revenue of $25.22 billion, according to data from BenzingaPro.

On July 9, Piper Sandler upgraded the stock from Underweight to Neutral and raised its price target from $37 to $42.

With the recent buzz surrounding Bank of America, some investors may also be interested in the company’s potential dividend gains. Bank of America currently offers an annual dividend yield of 2.30%, or a quarterly dividend amount of 24 cents per share (96 cents per year).

So how can investors leverage its dividend yield to consistently pocket $500 a month?

To earn $500 per month or $6,000 per year in dividends alone, you would need an investment of about $261,313, or about 6,250 shares. For a more modest $100 per month or $1,200 per year, you would need $52,263, or about 1,250 shares.

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See more income on BAC

Calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($0.96 in this case). So, $6,000 / $0.96 = 6,250 ($500 per month) and $1,200 / $0.96 = 1,250 shares ($100 per month).

Note that dividend yield can change continuously, as both dividend payments and stock price fluctuate over time.

How it works : Dividend yield is calculated by dividing the annual dividend payment by the current stock price.

For example, if a stock pays an annual dividend of $2 and is currently trading at $50, the dividend yield will 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 drops to $40, the dividend yield increases to 5% ($2/$40).

Similarly, changes in dividend payouts can impact yield. If a company increases its dividend, yield will also increase, provided the stock price remains the same. Conversely, if dividend payouts decrease, yield will also increase.

Evolution of BAC prices: Bank of America shares rose 0.2% to close at $41.81 on Thursday.

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