ConocoPhillips COP will release earnings results for the first quarter, before the opening bell on Thursday, May 8.
Analysts expect the Houston-based company to report quarterly earnings at $2.05 per share, up from $2.03 per share in the year-ago period. ConocoPhillips projects to report quarterly revenue at $15.91 billion, compared to $14.48 billion a year earlier, according to data from Benzinga Pro.
On April 29, Bank of America Securities analyst Kalei Akamine downgraded the rating for ConocoPhillips from Buy to Neutral and lowered the price target from $138 to $107.
With the recent buzz around ConocoPhillips, some investors may be eyeing potential gains from the company’s dividends. As of now, ConocoPhillips offers an annual dividend yield of 3.56% — a quarterly dividend of 78 cents per share ($3.12 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 $168,512 or around 1,923 shares. For a more modest $100 per month or $1,200 per year, you would need $33,738 or around 385 shares.
To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($3.12 in this case). So, $6,000 / $3.12 = 1,923 ($500 per month), and $1,200 / $3.12 = 385 shares ($100 per month).
Note that dividend yield can change on a rolling basis; the dividend payment and the stock price 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.
COP Price Action: Shares of ConocoPhillips gained 0.02% to close at $87.63 on Tuesday.
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