Business
Investing in Citigroup Stock Can Earn You $500 A Month
(CTN News) – The price of Citigroup Inc. (NYSE:C) at the end of trading on February 9, 2024 was $53.99.
Citigroup pays a quarterly dividend of $0.53 per share, echivalent to an annualized rate of $2.12 per share. This gives the stock a yield of 3.93% based on its closing price of $53.99 on February 9th.
As a Citigroup investor, how can you earn $500 per month?
If you want to earn $500 per month or $6,000 annually from Citigroup’s dividends, your investment value would be approximately $152,672, which is equal to 2,828 shares at a price of $53.99 per share. A $100 per month earnings target reduces your investment value to $30,534 or 566 shares.
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Using dividend yields to calculate the estimated value of investments: To calculate the estimated value of investments, you need to consider two key variables. In this case, the dividend yield is 3.93%, and the desired annual income is $6,000 or $1,200. Thus, $6,000 / 0.0393 equals $152,672 for $500 per month income, and $1,200 / 0.0393 equals $30,534 for $100 per month income.
Divide the annual dividend payments by the stock’s current price to determine the dividend yield. Dividend yields can fluctuate over time due to changes in stock prices and dividend payments.
Similarly to changes in the stock price, dividend payments can also affect yields. Without a change in the stock price, the dividend yield will increase when the company’s dividend value increases, and vice versa.
Consider, for example, a stock that pays $2 dividends annually and is valued at $50. A dividend yield of 4% would result from $2 / $50. Dividend yield falls from 3.33% to 3.33% as stock price rises from $60 to $60. The dividend yield increases to 5% ($2 / $40) if the stock price drops to $40.
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