How to Make $500 a Month on Morgan Stanley Stocks Ahead of Q2 Earnings Report

Morgan Stanley (NYSE:MS) will release its second quarter financial results before the open of trading on Tuesday, July 16.

Analysts expect the New York-based company to report quarterly earnings of $1.65 per share, compared with $1.24 per share in the same period a year earlier. Morgan Stanley is expecting revenue of $14.3 billion, up from $13.08 billion a year earlier, according to Benzinga Pro data.

On July 9, UBS analyst Brennan Hawken maintained a Neutral rating on Morgan Stanley. Hawken also raised his price target from $100 to $105.

Given the recent buzz surrounding Morgan Stanley, some investors may be keeping an eye on the company’s potential dividend yield. Morgan Stanley currently has a dividend yield of 3.27%. That’s a quarterly dividend of 85 cents per share ($3.40 per year).

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

We then take that amount and divide it by Morgan Stanley’s dividend of $3.40: $6,000 / $3.40 = 1,765 shares

So an investor would need to own approximately $183,719 worth of Morgan Stanley shares, or 1,765, to generate a monthly dividend income of $500.

Assuming a more conservative target of $100 per month ($1,200 per year), we do the same calculation: $1,200 / $3.40 = 353 shares, or $36,744, which would generate a monthly dividend income of $100.

See more earnings on MS

Also Read: 4 Top Tech and Telecom Stocks That Could Skyrocket in July

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.

MS price action: Morgan Stanley shares fell 0.5% to close at $104.09 on Friday.

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