Bank of America Corporation (NYSE:BAC) currently offers an annual dividend yield of 2.6%. That’s a quarterly dividend amount of 26 cents per share ($1.04 a year).
To earn $500 monthly from the Charlotte, North Carolina-based firm, start with a yearly target of $6,000 ($500 x 12 months).
Next, we take this amount and divide it by Bank of America's $1.04 dividend: $6,000 / $1.04 = 5,769 shares
So, an investor would need to own approximately $230,587 worth of Bank of America, or 5,769 shares to generate a monthly dividend income of $500.
Assuming a more conservative goal of $100 monthly ($1,200 annually), we do the same calculation: $1,200 / $1.04 = 1,154 shares, or $46,125 to generate a monthly dividend income of $100.
Note that dividend yield can change on a ...
