Pfizer Inc. (NYSE: PFE) wrapped up trading on Feb. 6 at $26.57. Over the past 52 weeks, its stock price ranged from $25.76 to $44.33.
On Jan. 30, the pharmaceutical and biotechnology firm unveiled its 2023 earnings report. In fiscal 2023, Pfizer distributed $9.2 billion in dividends to shareholders, translating to $1.64 per share.
With a current quarterly dividend of $0.42 per share, Pfizer’s annualized dividend sits at $1.68 per share, resulting in a dividend yield of 6.32% based on the Feb. 6 stock price.
How to Achieve $500 Monthly Income as a Pfizer Investor
To reach a $500 monthly income target or $6,000 annually from Pfizer dividends, you’d require an investment value of approximately $94,936, equivalent to around 3,573 shares at $26.57 per share. Opting for a $100 monthly target reduces the investment value to about $19,480, roughly 715 shares.
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Estimating Investment Values Using Dividend Yields:
To estimate investment values, you need two variables: desired annual income and the stock’s dividend yield. With a 6.32% yield, $6,000 / 0.0632 = $94,936 generates $500 monthly, while $1,200 / 0.0632 = $18,987 caters to $100 monthly.
Dividend yields are calculated by dividing annual dividend payments by the current stock price. They can fluctuate based on stock price movements and changes in dividend payments.
For example, a $2 annual dividend on a $50 stock implies a 4% yield. If the stock price climbs to $60, the yield drops to 3.33% ($2 / $60). Conversely, a $40 stock price hike raises the yield to 5% ($2 / $40).
The dividend yield varies with alterations in dividend value and stock price. Hence, it’s positively linked to dividend payments.
Disclaimer: Calculations are based on Feb. 6 share prices and annualized dividends. The closing price for Pfizer stock on Feb. 6 was $26.57.
