Benzinga - by Avi Kapoor, Benzinga Staff Writer.
JPMorgan Chase & Co. (NYSE: JPM) is expected to release earnings results for its fourth quarter, before the opening bell on Jan. 12, 2023.
Analysts expect the company to report quarterly earnings at $3.40 per share on revenue of $39.77 billion, according to Benzinga Pro. On Tuesday, Deutsche Bank analyst Matt O'Connor upgraded JPMorgan Chase from Hold to Buy and raised the price target from $140 to $190.
JPMorgan Chase CEO Jamie Dimon recently reiterated his long-standing opposition to Bitcoin and other cryptocurrencies, going so far as to suggest the government should shut down the industry.
With the recent buzz around JPMorgan, some investors may be eyeing potential gains from the company’s dividends. As of now, JPMorgan has a dividend yield of 2.46%, which is a quarterly dividend amount of $1.05 a share ($4.20 a year).
To figure out how to earn $500 monthly from JPMorgan dividends, we start with a yearly target of $6,000 ($500 x 12 months).
Next, we take this amount and divide it by JPMorgan’s $4.20 dividend: $6,000 / $4.20 = 1,429 shares
So, an investor would need to own approximately $243,873 worth of JPMorgan, or 1,429 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 / $4.20 = 286 shares, or $48,809 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.
JPM Price Action: Shares of JPMorgan fell 0.8% to close at $170.66 on Tuesday.
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