Analysts expect the bank to report quarterly earnings of $1.02 per share. That’s up from 90 cents per share in the year-ago period. The consensus estimate for Bank of America’s quarterly revenue is $29.95 billion. It reported $27.37 billion last year, according to Benzinga Pro..
Bank of America investors may be eyeing potential gains from the company’s dividends. Currently, the firm has an annual dividend yield of 2.10%. That’s a quarterly dividend amount of 28 cents per share ($1.12 a year).
To figure out how to earn $500 monthly from Bank of America, we start with the yearly target of $6,000 ($500 x 12 months).
Next, we take this amount and divide it by Bank of America’s $1.12 dividend: $6,000 / $1.12 = 5,357 shares.
So, an investor would need to own approximately $285,796 worth of Bank of America, or 5,357 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 / $1.12 = 1,071 shares, or $57,138 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.
BAC Price Action: Shares of Bank of America gained by 1.5% to close at $53.35 on Monday.
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