How to make $500 a month on Pfizer stock

28.11.2023

Shares of Pfizer Inc. are hovering around $30 as investors adjust to the fact that the company is looking for a weight-loss pill candidate, marking its entry into the competitive obesity drug market.

The Street reacted critically. Analysts at JPMorgan Chase & Co called the news a setback for the company. Lotiglipron was expected to be a stronger contender, which was not accepted for consideration.

SVB Securities, meanwhile, called the decision “incrementally negative,” according to Yahoo! Finance.

Nevertheless, Pfizer is moving forward with its plan to promote twice-daily pills while exploring a once-daily option. And Pfizer’s annual dividend yield is an impressive 5.44%.

Jeff Bezos called the meteoric success of this property investment strategy early in his career. He has bet millions on the growth of fractional investing, and you can get in on the action with as little as $100.

To earn $500 per month or $6,000 per year from dividends alone, you would need to invest approximately $111,524 or 3,707 shares. To receive a more modest $100 per month or $1,200 per year, you’d need $22,304, or 741 shares.

To calculate: Divide your desired annual income ($6,000 or $1,200) by the dividend yield (0.054 in this case). So $6,000 / 0.054 = $111,524 ($326 per month), and $1,200 / 0.054 = $22,304 ($100 per month).

Note that the dividend yield can change on a rolling basis because both dividend payments and stock price change over time.

How it works: The dividend yield is calculated by dividing the annual dividend payment by the current stock 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 rises to $60, the dividend yield will fall to 3.33% ($2/$60). Conversely, if the stock price falls to $40, the dividend yield rises to 5% ($2/$40).

Similarly, a change in dividend payments can affect the yield. If a company increases dividends, the yield will also increase when the stock price is unchanged. Conversely, if dividend payments decrease, the yield will also increase.