How to Make $500 a Month on Citigroup Stock Ahead of Q2 Earnings Report

Citigroup Inc. (NYSE:C) will release its second-quarter financial results before the open of trading on Friday.

Analysts are expecting the New York-based company to report quarterly earnings of $1.39 per share, compared with $1.33 per share in the same period a year earlier. Citigroup is expected to report revenue of $20.07 billion, compared with $19.44 billion a year earlier, according to Benzinga Pro data.

On July 5, Evercore ISI Group analyst Glenn Schorr maintained an In-Line rating on Citigroup shares and raised his price target from $60 to $62.

Given the recent buzz surrounding Citigroup, some investors may be keeping an eye on the company’s potential dividend yield. Citigroup currently has a dividend yield of 3.19%, which translates to a quarterly dividend amount of 53 cents per share ($2.12 per year).

To calculate how to make $500 per month from Citigroup, let’s start with an annual goal of $6,000 ($500 x 12 months).

We then take that amount and divide it by Citigroup’s dividend of $2.12: $6,000 / $2.12 = 2,830 shares

So an investor would need to own approximately $188,337 worth of Citigroup stock, or 2,830 shares, to generate a monthly dividend income of $500.

Using a more conservative target of $100 per month ($1,200 per year), we do the same math: $1,200 / $2.12 = 566 shares, or $37,667, which would generate a monthly dividend income of $100.

See more earnings on C

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It is important to remember that the dividend yield can be cyclical because both the dividend payout and the stock price fluctuate over time.

The dividend yield is calculated by dividing the annual dividend payment by the current stock price. As the stock price changes, the dividend yield will also change.

For example, if a stock pays an annual dividend of $2 and its current price is $50, the dividend yield would be 4%. However, if the stock price increases to $60, the dividend yield would decrease to 3.33% ($2/$60).

Conversely, if the stock price falls to $40, the dividend yield will increase to 5% ($2/$40).

In addition, the dividend payout itself can also change over time, which can also affect the dividend yield. If a company increases its dividend payout, the dividend yield will increase even if the stock price remains the same. Similarly, if a company reduces its dividend payout, the dividend yield will decrease.

Price action C: Citigroup shares gained 2.8% to close Tuesday at $66.55.

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This article How to Make $500 a Month in Citigroup Stock Ahead of Its Q2 Earnings Report originally appeared on Benzinga.com