How to Make $500 a Month in IBM Stock Ahead of Q3 Earnings – IBM (NYSE:IBM)

International Business Machines Corporation IBM will report third-quarter earnings results after the close of trading on Wednesday.

Analysts expect the Armonk, New York-based company to report quarterly earnings of $2.23 per share, down from $2.01 per share in the year-ago period. IBM is expected to report revenue of $15.07 billion for the latest quarter, up from $13.42 billion a year earlier, according to Benzinga Pro data.

IBM recently showcased its latest advancements in artificial intelligence with the release of Granite 3.0, the company’s most sophisticated family of artificial intelligence models. The announcement was made during IBM’s annual TechXchange event.

Given the recent hype surrounding IBM, some investors may also be eyeing potential benefits from the company’s dividend. IBM currently offers an annual dividend yield of 2.88%, which represents a quarterly dividend of $1.67 per share ($6.68 per year).

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So how can investors use dividend yield to earn a regular $500 per month?

To earn $500 a month or $6,000 a year from dividends alone, you’d need an investment of approximately $208,561, or about 898 shares. For a more modest $100 per month or $1,200 per year, you’d need $41,805, or about 180 shares.

For calculation: Divide your desired annual income ($6,000 or $1,200) by the dividend ($6.68 in this case). So $6,000/$6.68 = 898 ($500 per month), and $1,200/$6.68 = 180 shares ($100 per month).

Note that dividend yields can change depending on how dividend payouts and share prices fluctuate over time.

How does this work: 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 valued at $50, the dividend yield would be 4% ($2/$50). However, if the share price rises to $60, the dividend yield will drop to 3.33% ($2/$60). Conversely, if the share price falls to $40, the dividend yield rises to 5% ($2/$40).

Likewise, changes in dividend payments can impact returns. If a company increases its dividend, the yield will also increase, provided the share price remains the same. Conversely, if dividend payout decreases, yield will decrease.

IBM Price Action: IBM shares rose 0.2% to close at $232.25 on Tuesday.

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