How To Earn $500 A Month From 3M Stock Ahead Of Q4 Earnings

3M Co . (NYSE: MMM ) will release its fourth-quarter financial results, before the opening bell, on Tuesday, Jan. 21, 2025.

Analysts expect the Saint Paul, Minnesota-based company to report quarterly earnings at $1.55 per share, down from $2.42 per share in the year-ago period. 3M projects quarterly revenue of $5.85 billion, compared to $8.01 billion a year earlier, according to data from Benzinga Pro .

On Wednesday, JPMorgan analyst Stephen Tusa maintained 3M with an Overweight rating and lowered the price target from $165 to $162.

With the recent buzz around 3M, some investors may be eyeing potential gains from the company's dividends, too. As of now, 3M offers an annual dividend yield of 2.01%, which is a quarterly dividend amount of 70 cents per share ($2.80 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 $298,263 or around 2,143 shares. For a more modest $100 per month or $1,200 per year, you would need $59,708 or around 429 shares.

To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($2.80 in this case). So, $6,000 / $2.80 = 2,143 ($500 per month), and $1,200 / $2.80 = 429 shares ($100 per month).

View more earnings on MMM

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.

MMM Price Action: Shares of 3M gained 1% to close at $139.18 on Thursday.

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This article How To Earn $500 A Month From 3M Stock Ahead Of Q4 Earnings originally appeared on Benzinga.com