In This Article:
NRG Energy, Inc. (NYSE:NRG) will release earnings results for the first quarter, before the opening bell on Monday, May 12.
Analysts expect the Houston-based company to report quarterly earnings at $1.67 per share, up from 90 cents per share in the year-ago period. And, on May 5, Jefferies analyst Julien Dumoulin-Smith maintained NRG Energy with a Buy rating and raised the price target from $113 to $132.
With the recent buzz around NRG Energy, some investors may be eyeing potential gains from the company's dividends. Currently, NRG Energy offers an annual dividend yield of 1.46%. That’s a quarterly dividend amount of 44 cents per share ($1.76 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 $410,239 or around 3,409 shares. For a more modest $100 per month or $1,200 per year, you would need $82,072 or around 682 shares.
To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($1.76 in this case). So, $6,000 / $1.76 = 3,409 ($500 per month), and $1,200 / $1.76 = 682 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.
NRG Price Action: Shares of NRG Energy gained 1.4% to close at $120.34 on Thursday.
Read More:
Shutterstock
Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market.
Get the latest stock analysis from Benzinga?
This article How To Earn $500 A Month From NRG Energy Stock Ahead Of Q1 Earnings originally appeared on Benzinga.com
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.