How To Earn $500 A Month From McDonald's Stock Ahead Of Q3 Earnings

McDonald’s Corporation (NYSE:MCD) will release earnings results for the fourth quarter, before the opening bell on Wednesday, Nov. 5.

Analysts expect the company to report quarterly earnings at $3.33 per share. That’s up from $3.23 per share in the year-ago period. The consensus estimate for McDonald’s quarterly revenue is $7.09 billion, according to data from Benzinga Pro. Compare that to $6.87 billion a year earlier.

The company has beaten analyst estimates for revenue in six of the last 10 quarters, including the most recently reported second quarter.

With the recent buzz around McDonald’s, some investors may be eyeing potential gains from the company's dividends too. As of now, McDonald’s offers an annual dividend yield of 2.51%, which is a quarterly dividend amount of $1.86 per share ($7.44 a year).

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

Next, take that amount and divide it by McDonald’s $7.44 dividend: $6,000 / $7.44 = 806 shares.

So, an investor would need to own approximately $238,874 worth of McDonald’s, or 806 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 / $7.44 = 161 shares, or $47,716 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.

MCD Price Action: Shares of McDonald’s fell by 0.7% to close at $296.37 on Monday.

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