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

Zinger Key Points
  • An investor would need to own $254,893 worth of JPMorgan to generate a monthly dividend income of $500.
  • A more conservative goal of $100 monthly dividend income would require owning 261 shares of JPMorgan.

JPMorgan Chase & Co. JPM is set to release earnings results for its first quarter, before the opening bell on April 12, 2024.

Analysts expect the New York-based investment bank to report quarterly earnings at $4.15 per share, up from $4.1 per share in the year-ago quarter; and quarterly revenue of $41.96 billion, compared to $39.34 billion in the year-earlier period, according to Benzinga Pro.

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Some investors may be eyeing potential gains from the firm’s dividends. As of now, JPMorgan has a dividend yield of 2.35%, which is a quarterly dividend amount of $1.15 a share ($4.60 a year).

To figure out how to earn $500 monthly from JPMorgan, we start with the yearly target of $6,000 ($500 x 12 months).

Next, we take this amount and divide it by JPMorgan’s $4.60 dividend: $6,000 / $4.60 = 1,304 shares

So, an investor would need to own approximately $254,893 worth of JPMorgan, or 5,172 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 / $4.60 = 261 shares, or $51,018 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.

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.

JPM Price Action: Shares of JPMorgan fell 0.9% to close at $195.47 on Wednesday.

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