Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG) shares closed slightly lower on Monday.
During a strategy meeting with Alphabet executives, CEO Sundar Pichai discussed key topics for 2025, including artificial intelligence, competition and regulatory burden.
“The stakes are high,” Pichai said at the Dec. 18 meeting, as reported by CNBC. “I think 2025 will be crucial. I think it is very important that we internalize the urgency of this moment and that we need to act faster as a company.”
On December 23, B of A Securities analyst Justin Post maintained a buy rating on Alphabet and maintained a $210 price target.
With the recent rumors surrounding Alphabet, some investors may also be looking at potential gains from the company’s dividends. As of now, Alphabet offers an annual dividend yield of 0.42%, which equates to a quarterly dividend of 20 cents per share (80 cents per year).
So how can investors leverage the dividend yield to put $500 in their pocket every month?
To earn $500 per month or $6,000 per year from dividends alone, you’ll need an investment of about $1,434,300, or about 7,500 shares. For a more modest amount of €100 per month or €1,200 per year, you need €286,860, or about 1,500 shares.
Calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($0.80 in this case). So $6,000 / $0.80 = 7,500 ($500 per month) and $1,200 / $0.80 = 1,500 shares ($100 per month).
Keep in mind that the dividend yield can be constantly changing because the dividend payout and the stock price both fluctuate over time.
How that works: The dividend yield is calculated by dividing the annual dividend payment by the current share price.
For example, if a stock pays an annual dividend of €2 and is currently worth €50, the dividend yield is 4% (€2/€50). However, if the stock price rises to $60, the dividend yield drops to 3.33% ($2/$60). Conversely, if the stock price falls to $40, the dividend yield rises to 5% ($2/$40).
Likewise, changes in dividend payments can affect returns. If a company increases its dividend, the yield will also increase, provided the share price remains the same. Conversely, if the dividend payment decreases, the yield also decreases.
GOOGL Price Promotion: Alphabet shares fell 0.8% to close at $191.24 on Monday.
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