How To Earn $500 A Month From Citigroup Stock Ahead Of Q2 Earnings

As banks adapt to a changing economic landscape, Citigroup’s upcoming earnings report highlights a broader trend of renewed investor confidence in financial institutions. With anticipated earnings growth and a solid dividend yield, Citigroup is positioning itself as an attractive option for income-seeking investors.

Citigroup Inc. (NYSE:C) will release earnings results for the second quarter, before the opening bell on Tuesday, July 15.

Analysts expect the company to report quarterly earnings at $1.63 per share, up from $1.52 per share in the year-ago period. Citigroup projects to report quarterly revenue of $20.83 billion, compared to $20.14 billion a year earlier, according to data from Benzinga Pro.

On Wednesday, Truist Securities analyst John McDonald maintained a Buy rating for Citigroup and raised the price target from $84 to $93.

With the recent buzz around Citigroup, some investors may be eyeing potential gains from the company's dividends too. As of now, Citigroup offers an annual dividend yield of 2.57%, which is a quarterly dividend amount of 56 cents per share ($2.24 a year).

To figure out how to earn $500 monthly from Citigroup, we start with the yearly target of $6,000 ($500 x 12 months).

Next, we take this amount and divide it by Citigroup's $2.24 dividend: $6,000 / $2.24 = 2,679 shares.

So, an investor would need to own approximately $233,287 worth of Citigroup, or 2,679 shares to generate a monthly dividend income of $500.

Assuming a more conservative goal of $100 monthly ($1,200 annually), we do the same calculation: $1,200 / $2.24 = 536 shares, or $46,675 to generate a monthly dividend income of $100.

Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.

The dividend yield is calculated by dividing the annual dividend payment by the current stock price. As the stock price changes, the dividend yield will also change.

For example, if a stock pays an annual dividend of $2 and its current price is $50, its dividend yield would be 4%. However, if the stock price increases to $60, the dividend yield would decrease to 3.33% ($2/$60).

Conversely, if the stock price decreases to $40, the dividend yield would increase to 5% ($2/$40).

Further, the dividend payment itself can also change over time, which can also impact the dividend yield. If a company increases its dividend payment, the dividend yield will increase even if the stock price remains the same. Similarly, if a company decreases its dividend payment, the dividend yield will decrease.

C Price Action: Shares of Citigroup gained by 1.5% to close at $87.08 on Thursday.

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