How To Earn $500 Per Month From Diageo (NYSE: DEO) Stock

Author: judithnwadigo@gmail.com | December 14, 2023 01:40pm

Diageo Plc (NYSE:DEO) stock prices reached a 52-week high of $191.93 and hit a 52-week low of $135.63, according to recent reports. 

Diageo pays dividends at a rate of 2.77% in April and October. Investors looking for a flexible plan — six to  12 months — may take advantage of the Diageo stock opportunity in preparation for the bull market. 

To earn $500 per month or $6,000 per year, you must invest $216,606 to buy 1,539 shares. To earn $100 per month or $1,200 per year, you must invest $43,321 to buy 307 shares. 

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To calculate your investment: 

Divide your desired income of $6,000 or $1,200 by Diageo's dividend yield of 0.0277: 

$6,000/0.0277 = $216,606 ($18,050 per month investment) or $1,200/0.0277 = $43,321 ($3,610 per month investment). 

Note that the dividend yield can change on a rolling basis, as the dividend payment and stock price fluctuate over time. 

To calculate your dividend yield before investing, divide the annual dividend payment by the stock's price. 

For instance, if a stock pays an annual dividend of $3.90 and is selling at approximately $140.70 per share, the dividend yield would be $3.90/$140.70 = 0.0277 or 2.77%. However, if the stock price increases to $150, the dividend yield would be $3.90/$150 = 0.026 or 2.6%. But if the stock price slides to $120, the dividend yield would be $3.90/$120 = 0.0325 or 3.25%. 

Like the stock price, changes in the dividend payment can affect the yield. If a company increases the dividend payment on a stock, the yield will rise. But if it decreases the payment, the yield will fall. 

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Posted In: DEO