How To Earn $500 A Month From Sempra Stock

Sempra (NYSE:SRE) shares closed slightly lower during Friday's session The company narrowed its FY2025 adjusted EPS forecast from $4.30-$4.70 to $4.70, compared with market estimates of $4.54, according to Benzinga Pro data. With the recent buzz around Sempra, some investors may be eyeing potential gains from the company's dividends too. As of now, Sempra offers an annual dividend yield of 2.97%, which is a quarterly dividend amount of 64.5 cents per share ($2.58 a year). How can investors leverage 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 $202,222 or around 2,326 shares. For a more modest $100 per month or $1,200 per year, you would need roughly $40,514, or 466 shares. To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($2.58 in this case). So, $6,000 / $2.58 = 2,326 ($500 per month), and $1,200 / $2.58 = 465 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. SRE Price Action: Shares of Sempra fell 0.4% to close at $86.94 on Friday. Read More: Top 2 Materials Stocks That May Plunge In Q4 Photo: Shutterstock