How To Earn $500 A Month From KeyCorp Stock Ahead Of Q3 Earnings

Benzinga · 10/16 17:58

KeyCorp (NYSE:KEY) will release earnings results for its third quarter before the opening bell on Thursday, Oct. 17.

Analysts expect the Cleveland, Ohio-based company to report quarterly earnings at 15 cents per share, down from 29 cents per share in the year-ago period. KeyCorp projects to report revenue of $1.27 billion for the recent quarter, compared to $1.56 billion a year earlier, according to data from Benzinga Pro.

On Monday, Baird analyst David George downgraded KeyCorp from Outperform to Neutral and lowered the price target from $18 to $17.

With the recent buzz around KeyCorp, some investors may be eyeing potential gains from the company's dividends too. As of now, KeyCorp offers an annual dividend yield of 4.62%, which is a quarterly dividend amount of 20.5 cents per share (82 cents a year).

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

Next, we take this amount and divide it by KeyCorp's $0.82 dividend: $6,000 / $0.82 = 7,317 shares

So, an investor would need to own approximately $129,584 worth of KeyCorp, or 7,317 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 / $0.82 = 1,463 shares, or $25,910 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.

KEY Price Action: Shares of KeyCorp gained by 1.2% to trade at $17.71 on Wednesday.

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