Benzinga - by AJ Fabino, Benzinga Staff Writer.
Shares of Rtx Corp (NYSE: RTX) are trading nearly 8% lower on Monday after the company announced a a profit cut of up to $3.5 billion. Here’s what you need to know about RTX, and how to earn $500 a month from its stock.
What Happened: RTX, the world’s largest aerospace and defense company by sales, said on Monday that it is recalling 600 to 700 Pratt engines over the next three years, a decision coming from issues related to the powder metal utilized in certain engine parts.
The recall added to the ongoing engine scarcity affecting global airline fleet giants like Airbus SE (OTCMKTS: EADSY) and Boeing Co (NYSE: BA), according to The Wall Street Journal.
In light of the profit cut, one might wonder: Is there a silver lining for investors? Buy-the-dip mentality aside, this is where dividends come in, a potential income stream even as the stock wobbles.
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By The Numbers: Using RTX's current share price of $76.83, coupled with its dividend yield of 3.05%, here’s how you can potentially pocket $500 a month solely from dividends.
To bring in a monthly $500 dividend payout ($6,000 annually), you're looking at buying roughly 2,550 shares, which would run you roughly $196,721. However, if you're leaning towards a smaller monthly dividend of $100, then an investment of $39,345 for 510 shares would work.
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%. If the stock price increases to $60, the dividend yield would decrease to 3.33% ($2/$60).
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