How To Earn $500 A Month From Crown Castle Stock Ahead Of Q4 Earnings

Crown Castle Inc. CCI will release its fourth-quarter financial results, after the closing bell, on Thursday, March 13.

Analysts expect the company to report quarterly earnings at 40 cents per share. That’s down from 86 cents per share in the year-ago period. Crown Castle projects quarterly revenue of $1.64 billion. It generated $1.67 billion a year earlier, according to data from Benzinga Pro.

On Feb. 13, Citigroup analyst Michael Rollins maintained Crown Castle with a Buy rating and lowered the price target from $128 to $106.

With the recent buzz around Crown Castle, some investors may be eyeing potential gains from the company’s dividends too. As of now, Crown Castle offers an annual dividend yield of 6.57%, which is a quarterly dividend amount of $1.56 cents per share ($6.26 a year).  

So, how can investors exploit its dividend yield to pocket a regular $500 monthly?

To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $91,288 or around 958 shares. For a more modest $100 per month or $1,200 per year, you would need $18,296 or around 192 shares.

To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($6.26 in this case). So, $6,000 / $6.26 = 958 ($500 per month), and $1,200 / $6.26 = 192 shares ($100 per month).

Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.

How that works: The dividend yield is computed by dividing the annual dividend payment by the stock’s current 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 increases to $60, the dividend yield drops to 3.33% ($2/$60). Conversely, if the stock price falls to $40, the dividend yield rises to 5% ($2/$40).

Similarly, changes in the dividend payment can impact the yield. If a company increases its dividend, the yield will also increase, provided the stock price stays the same. Conversely, if the dividend payment decreases, so will the yield.

CCI Price Action: Shares of Crown Castle fell 2.4% to close at $95.29 on Wednesday.

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