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

JPMorgan Chase & Co. (NYSE:JPM) will release its second quarter financial results before the open of trading on Friday, July 12th.

Analysts expect the New York-based company to report quarterly earnings of $4.15 per share, up from $4.75 per share in the same period a year earlier. JPMorgan is expecting revenue of $42.03 billion, up from $42.4 billion a year earlier, according to Benzinga Pro data.

On July 9, Keefe, Bruyette & Woods analyst David Konrad reiterated a Market Perform rating on JPMorgan Chase shares while raising his price target from $209 to $211.

Given the recent buzz around JPMorgan, some investors may also be looking at potential dividend gains from the company. JPMorgan currently offers an annual dividend yield of 2.21%. That’s a quarterly dividend amount of $1.15 per share ($4.60 per year).

So how can investors leverage the dividend yield and consistently earn $500 per month?

To earn $500 per month or $6,000 per year in dividends alone, you would need an investment of about $270,971, or about 1,304 shares. To earn a more modest $100 per month or $1,200 per year, you would need $54,236, or about 261 shares.

Read This: Wall Street’s Most Accurate Analysts Rank 3 High-Dividend Consumer Stocks

See more earnings at JPM

To count: Divide the desired annual income ($6,000 or $1,200) by the dividend ($4.60 in this case). So, $6,000 / $4.60 = 1,304 ($500 per month), and $1,200 / $4.60 = 261 shares ($100 per month).

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

How it’s working: The dividend yield is calculated by dividing the annual dividend payment by the current stock price.

For example, if a stock pays an annual dividend of $2 and is currently trading at $50, the dividend yield will be 4% ($2/$50). However, if the stock price increases to $60, the dividend yield will decrease to 3.33% ($2/$60). Conversely, if the stock price decreases to $40, the dividend yield will increase to 5% ($2/$40).

Similarly, changes in dividend payouts can affect profitability. If a company increases its dividend, profitability will also increase, provided the share price remains the same. Conversely, if the dividend payout decreases, profitability will also decrease.

JPM Price Action: JPMorgan shares rose 0.1% to close Wednesday at $207.80.

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