How To Earn $500 A Month From Annaly Capital Management Stock

Annaly Capital Management, Inc. NLY shares closed flat on Thursday, despite the S&P 500 hovering near its record closing level, set on Jan. 3, 2022.

Keefe, Bruyette & Woods analyst Bose George, earlier during the month, maintained Annaly Capital Management with an Outperform rating and raised the price target from $17 to $21.50.

Annaly Capital Management, during October, reported a third-quarter GAAP loss of $1.21 per share, versus a year-ago loss of 70 cents per share.

The company’s shares jumped around 10% over the past month but fell about 7% year-to-date.

With the recent buzz around Annaly Capital Management, some investors may be eyeing potential gains from the company’s dividends. As of now, Annaly Capital Management has a dividend yield of 13.08%, which is a quarterly dividend amount of 65 cents a share ($2.60 a year).

To figure out how to earn $500 monthly from Annaly Capital Management dividends, we start with a yearly target of $6,000 ($500 x 12 months).

Next, we take this amount and divide it by Annaly Capital Management $2.60 dividend: $6,000 / $2.60 = 2,308 shares

So, an investor would need to own approximately $45,883 worth of Annaly Capital Management, or 2,308 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 / $2.60 = 462 shares, or $9,184 to generate a monthly dividend income of $100.

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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.

NLY Price Action: Shares of Annaly Capital Management were down 3.1% to $19.88 on Thursday.

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