How To Earn $500 A Month From Albemarle Stock

Albemarle Corporation (NYSE:ALB) shares closed higher on Thursday after various analysts raised their price targets on the stock.

Mizuho analyst John Roberts maintained Albemarle with a Neutral and raised the price target from $110 to $132, while Citigroup analyst Patrick Cunningham maintained the stock with a Neutral and boosted the price target from $100 to $150.

With the recent buzz around Albemarle, some investors may be eyeing potential gains from the company's dividends. As of now, Albemarle offers an annual dividend yield of 1.15%, with a quarterly dividend amount of 40.5 cents per share ($1.62 a year).  

How can investors leverage their 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 $520,338 or around 3,704 shares. For a more modest $100 per month or $1,200 per year, you would need $104,096 or around 741 shares.

To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($1.62 in this case). So, $6,000 / $1.62 = 3,704 ($500 per month), and $1,200 / $1.62 = 741 shares ($100 per month).

Note that dividend yield can change on a rolling basis as both the dividend payment and the stock price 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 dividend payments can affect the yield. If a company increases its dividend, the yield will also increase, provided the stock price remains unchanged. Conversely, if the dividend payment decreases, so will the yield.

ALB Price Action: Shares of Albemarle gained 4.3% to close at $140.48 on Thursday.

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