Analysts expect the company to report fourth-quarter earnings of $2.26 per share. That’s up from $1.92 per share in the year-ago period. The consensus estimate for GM’s quarterly revenue is $46.04 billion (it reported $47.7 billion last year), according to Benzinga Pro.
Ahead of quarterly earnings, Barclays analyst Dan Levy, on Friday, maintained General Motors with an Overweight rating and raised the price target from $85 to $100.
With the recent buzz around General Motors, some investors may be eyeing potential gains from the company’s dividends too. As of now, GM has an annual dividend yield of 0.75%, which is a quarterly dividend amount of 15 cents per share (60 cents a year).
So, how can investors exploit its dividend yield to pocket a regular $500 monthly?
To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $796,800 or around 10,000 shares. For a more modest $100 per month or $1,200 per year, you would need $159,360 or around 2,000 shares.
To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($0.60 in this case). So, $6,000 / $0.60 = 10,000 ($500 per month), and $1,200 / $0.60 = 2,000 shares ($100 per month).
Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.
How that works: The dividend yield is computed by dividing the annual dividend payment by the stock’s current price.
For example, if a stock pays an annual dividend of $2 and is currently priced at $50, the dividend yield would be 4% ($2/$50). However, if the stock price increases 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).
Similarly, changes in the dividend payment can impact the yield. If a company increases its dividend, the yield will also increase, provided the stock price stays the same. Conversely, if the dividend payment decreases, so will the yield.
GM Price Action: Shares of General Motors fell by 1.8% to close at $79.68 on Friday.
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