(CTN News) – On Tuesday, July 16, prior to the opening bell, Bank of America Corporation (NYSE:BAC) will announce the financial results of the second quarter. These results will be released.
It is projected that the corporation, which has its headquarters in Charlotte, North Carolina, will report quarterly earnings of 80 cents per share.
This represents a decline from the 88 cents per share that was reported during the same time period in the previous year. It is projected that Bank of America would show a revenue of $25.22 billion, as stated by the information that was provided by Benzinga Business Pro.
On July 9, we upgraded Bank of America stock from Underweight to Neutral.
Piper Sandler raised the price objective for the stock from $37 to $42. This was done after the firm upgraded the stock from Underweight to Neutral.
In light of the recent buzz that has surrounded Bank of America, it is possible that a lot of investors are contemplating the prospect of making profits from the dividends that are given out by the company. As of right now, Bank of America offers a dividend yield of 2.30 percent on an annual basis.
This translates to a quarterly dividend payment of 24 cents per share, which is equivalent to 96 cents on an annual basis.
At this point, the question that needs to be answered is how investors can make use of this dividend yield to ensure that they receive a monthly payment of $500.
A monthly income of $500 or an annual income of $6,000 solely from dividends would need an investment of around $261,313 or approximately 6,250 shares.
This would be the case if the dividends were the only source of income. To achieve a more modest monthly income of $100 or an annual income of $1,200, you would require $52,263 or around 1,250 shares. This would be the amount of money you would need to invest.
Using the calculation, take the targeted yearly Bank of America income, which may be either $6,000 or $1,200, and divide it by the dividend, which in this particular example is $0.96.
As a result, the division of $6,000 by $0.96 results in 6,250 shares, which is similar to $500 each month. Similarly, the division of $1,200 by $0.96 results in 1,250 shares, which is comparable to $100 per month.
Because the dividend payment and the stock price are both subject to change over time, it is essential to keep in mind that the dividend yield may fluctuate on a rolling basis. This is because both of these factors are subject to change.
For the purpose of determining the dividend yield, the annual dividend payment is divided by the current price of the stock.
Here’s how Bank of America calculates dividend yields.
In the event that both of these conditions are met, for example, Bank of America stock that is currently priced at $50 and pays an annual dividend of $2 would have a dividend yield of 4% ($2/$50), assuming both of these elements are true. When the stock price increases to $60, on the other hand, the dividend yield will reduce to 3.33% ($2/$60), which is a lower amount than it would be otherwise.
Instead, the dividend yield will grow to 5% ($2/$40) if the stock price falls below $40, which is a considerable increase. This represents a significant increase.
Variations in the dividend payout could potentially have an impact on the yield for the same reason. On the assumption that the stock price does not change, an increase in the dividend that a company pays out will lead to an increase in the yield that is proportional to the increase in dividends.
In the event that, on the other hand, the dividend payment is reduced, the yield will also be reduced.
BAC Price Action: On Thursday, shares of Bank of America reached a closing price of $41.81 per share, representing a 0.2% increase from the previous day’s closing price.
SOURCE: YN
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Salman Ahmad is known for his significant contributions to esteemed publications like the Times of India and the Express Tribune. Salman has carved a niche as a freelance journalist, combining thorough research with engaging reporting.
