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How To Earn $500 A Month From Morgan Stanley Stock Ahead Of Q1 Earnings

Published 15/04/2024, 13:22
© Reuters. How To Earn $500 A Month From Morgan Stanley Stock Ahead Of Q1 Earnings
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Benzinga - by Avi Kapoor, Benzinga Staff Writer.

Morgan Stanley (NYSE: MS) is set to release earnings results for its first quarter, before the opening bell on April 16, 2024.

According to Benzinga Pro, analysts expect the New York-based bank to report quarterly earnings at $1.66 per share, up from $1.55 per share in the year-ago quarter; and quarterly revenue of $14.41 billion, compared to $13.92 billion in the year-earlier period.

On April 9, JMP Securities analyst Devin Ryan reiterated Morgan Stanley with a Market Perform rating.

With the recent buzz around Morgan Stanley, some investors may be eyeing potential gains from the company’s dividends. As of now, Morgan Stanley has a dividend yield of 3.94%, which is a quarterly dividend amount of 85 cents a share ($3.40 a year).

To figure out how to earn $500 monthly from Morgan Stanley, we start with the yearly target of $6,000 ($500 x 12 months).

Next, we take this amount and divide it by Morgan Stanley’s $3.40 dividend: $6,000 / $3.40 = 1,765 shares

So, an investor would need to own approximately $152,125 worth of Morgan Stanley, or 1,765 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 / $3.40 = 353 shares, or $30,425 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.

MS Price Action: Shares of Morgan Stanley fell 0.8% to close at $86.19 on Friday.

Read More: Goldman Sachs, Charles Schwab And 3 Stocks To Watch Heading Into Monday

Image: Shutterstock

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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