How To Earn $500 A Month From Meta Stock

Meta Platforms, Inc. (NASDAQ:META) shares closed slightly higher during Tuesday's session. On Tuesday, Baird analyst Colin Sebastian maintained Meta with an Outperform rating and lowered the price target from $820 to $815, according to Benzinga Pro. With the recent buzz around Meta, some investors may be eyeing potential gains from the company's dividends too. As of now, Meta offers an annual dividend yield of 0.32%, which is a quarterly dividend amount of 52.5 cents per share ($2.10 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 $1,899,734 or around 2,857 shares. For a more modest $100 per month or $1,200 per year, you would need $379,681 or around 571 shares. To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($2.10 in this case). So, $6,000 / $2.10 = 2,857 ($500 per month), and $1,200 / $2.10 = 571 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. META Price Action: Shares of Meta rose by 0.5% to close at $664.94 on Tuesday. Read More: Jim Cramer Is Bullish On This Tech Stock: ‘Continue To Own It’ Photo: Poetra.RH / Shutterstock