Walgreens Boots Alliance Inc. (NASDAQ:WBA) closed at $25.14, up 2.07%, at the end of trading hours on December 14. The stock has a 52-week trading range of $19.68 to $41.31 and a total market cap of $21.88 billion.
Walgreens Boots Alliance is a holding company whose principal assets are interests in subsidiaries. Its subsidiaries operate in the retail pharmacy and healthcare industries in the United States and other countries. The parent company relies on its operating subsidiaries to finance the payment of dividends to shareholders.
The company declared a dividend of $0.48 per share each quarter of financial year 2023. The dividend distributed is $1.92 with a dividend yield of 9.21%. Total cash dividends for the year were $1.7 billion, matching the previous year’s dividends.
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How can you make $1,000 per month as a WBA investor?
Assuming your goal is to earn $1,000 per month or $12,000 per year from Walgreens Boots Alliance dividends, you need to invest $130,293. At $25.14 per share, that equates to owning 5,183 shares. If you lower your goal to $200 per month or $2,400 per year, the investment value is $26,059 or 1,036 shares.
Using dividend yield to estimate investment value: Your estimate of investment value can be derived using the desired annual income of $12,000 or $2,400 and the dividend yield, which is 9.21%.
Dividend yield is a percentage calculated by dividing dividend payments by a stock’s market price.
To earn $1,000 per month, the estimated value of your investment is $12,000/0.0921 or $130,293. If you opt for a monthly income of $200, the investment value is $2,400 / 0.0921 or $26,059.
When estimating, it’s important to keep in mind that a company’s dividend yield can change over time. This change can be attributed to stock price fluctuations as well as the company’s dividend policies. Estimated investment value calculations do not take into account capital appreciation in stock prices. If these are not taken into account in the calculation, the value of the dividend and its yield are positively correlated.
Suppose a stock paying an annual dividend of $2 is trading at $50. The dividend yield would be $2/$50 or 4%. When the stock price rises to $60, the dividend yield drops to $2/$60 or 3.33%. If the stock price drops to $40, it will trigger a reverse effect and increase the dividend yield to 5% ($2/$40). Since stock price fluctuations impact yield, changes to the company’s dividend policies also affect yield.
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This item How to Make $1,000 a Month from Walgreens Stock (NASDAQ: WBA) originally appeared on Benzinga.com
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