How To Earn $500 A Month From Bank of America Stock Ahead Of Q4 Earnings

by | Jan 9, 2026 | General

Investors are turning their focus to Bank of America‘s (NYSE:BAC) dividend as the lender heads into its upcoming earnings report.

Before the opening bell on Wednesday, Jan. 14, analysts expect the bank to report fourth-quarter earnings of 96 cents per share. That’s up from 82 cents per share in the year-ago period. The consensus estimate for Bank of America’s quarterly revenue is $27.62 billion (it reported $25.35 billion last year), according to Benzinga Pro.

Currently, Bank of America has an annual dividend yield of 1.99%. That’s a quarterly dividend amount of 28 cents per share ($1.12 a year). How can investors exploit its dividend yield to pocket a regular $500 monthly?

To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $300,956 or around 5,357 shares. For a more modest $100 per month or $1,200 per year, you would need $60,169 or around 1,071 shares.

To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($1.12 in this case). So, $6,000 / $1.12 = 5,357 ($500 per month), and $1,200 / $1.12 = 1,071 shares ($100 per month).

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

How that works: The dividend yield is computed by dividing the annual dividend payment by the stock’s current price.

For example, if a stock pays an annual dividend of $2 and is currently priced at $50, the dividend yield would be 4% ($2/$50). However, if the stock price increases to $60, the dividend yield drops to 3.33% ($2/$60). Conversely, if the stock price falls to $40, the dividend yield rises to 5% ($2/$40).

Similarly, changes in the dividend payment can impact the yield. If a company increases its dividend, the yield will also increase, provided the stock price stays the same. Conversely, if the dividend payment decreases, so will the yield.

BAC Price Action

Shares of Bank of America gained by 1% to close at $56.18 on Thursday.

On Wednesday, Wolfe Research analyst Steven Chubak downgraded Bank of America from Outperform to Peer Perform, while TD Cowen analyst Steven Alexopoulos maintained the stock with a Buy and raised the price target from $64 to $66.

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