Alphabet Inc. (NASDAQ:GOOGLE) (NASDAQ:GOOG) shares closed slightly lower on Monday.
In a strategy meeting featuring Alphabet executives, CEO Sundar Pichai addressed key 2025 topics, including artificial intelligence, competition and regulatory pressures.
“The stakes are high,” Pichai said at the Dec. 18 gathering, as reported by CNBC. “I believe 2025 will be crucial. I think it is very important that we internalize the urgency of this moment and the need to move faster as a company.”
On December 23, B of A Securities analyst Justin Post maintained the Alphabet with a Buy rating and maintained a $210 price target.
With the recent buzz around Alphabet, some investors may be eyeing potential dividends from the company as well. Alphabet currently offers an annual dividend yield of 0.42%, which amounts to a quarterly dividend of 20 cents per share (80 cents per annum).
So, how can investors take advantage of its dividend product to pocket a regular $500 every month?
To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of about $1,434,300 or about 7,500 shares. For a more modest $100 a month or $1,200 a year, you would need $286,860 or about 1,500 shares.
To 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).
Note that dividend yields can change on a rolling basis, as both the dividend payment and the stock price fluctuate over time.
How that works: 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 valued 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 affect the yield. If a company increases its dividend, the yield will also increase, provided the stock price remains the same. Conversely, if the dividend payment decreases, so does the yield.
GOOGL Price Action: Alphabet shares fell 0.8% to close at $191.24 on Monday.
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