How To Earn $500 A Month With This $10 Stock

Zinger Key Points
  • Vanguard netted $11.56 million from RITM's 25-cent second quarter dividend, owning 46.25 million shares.
  • If you’re looking to earn $500 per month from RITM’s dividends, or $6,000 annually, you'd need about 5,882 shares.

Wall Street isn't just a playground for institutional giants, it’s a treasure trove of opportunities for retail investors too. If you’re looking to earn some passive income, you may want to pay attention to what the “smart money” is doing.

One way to do that is by looking at the 13F filings, which give insights into the portfolio allocations of large institutional investors. On the topic of large investors, The Vanguard Group seems to have hit a goldmine with its stake in Rithm Capital Corp RITM.

The Vanguard Group netted a cool $11.56 million from Rithm Capital's 25-cent dividend payment over the second quarter, as it owned more than 46.25 million company shares.

While most retail investors can’t buy millions of shares, RITM's 10.11% dividend yield presents an intriguing opportunity for generating monthly income.

If you're looking to earn $500 per month from RITM's dividends, or $6,000 annually, you’d need about 5,882 shares, which equates to about $59,405 at current share prices.

For a $100 monthly income, you’d need 1,176 shares, which would run a more modest $11,881.

Read also: AMC’s All-Time Lows May Go Lower As Silver Screens Fade To Black

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.

Read next: US Stocks Grind Higher As China Cuts Taxes On Trading, Eyes Further Stimulus

Photo: Shutterstock

Market News and Data brought to you by Benzinga APIs
Posted In: Long IdeasMid CapNewsDividendsMarketsTrading IdeasGeneral$500 Dividend13F filingsdividend yieldsThe Vanguard Group
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!