How To Earn $500 A Month From ONEOK Stock Ahead Of Q2 Earnings

ONEOK, Inc. (NYSE:OKE) will release earnings results for the second quarter, after the closing bell on Monday, Aug. 4.

Analysts expect the Tulsa, Oklahoma-based company to report quarterly earnings of $1.33 per share, in line with the year-ago period. ONEOK projects to report quarterly revenue at $8.33 billion, compared to $4.89 billion a year earlier, according to data from Benzinga Pro.

With the recent buzz around ONEOK, some investors may be eyeing potential gains from the company's dividends. ONEOK currently offers an annual dividend yield of 5.02% and a quarterly dividend amount of $1.03 per share ($4.12 a year).

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

Next, we take this amount and divide it by ONEOK's $4.12 dividend: $6,000 / $4.12 = 1,456 shares.

So, an investor would need to own approximately $119,552 worth of ONEOK, or 1,456 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 / $4.12 = 291 shares, or $23,894 to generate a monthly dividend income of $100.

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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.

Price Action: Shares of ONEOK fell by 0.1% to close at $82.11 on Thursday.

On July 22, Raymond James analyst J.R. Weston maintained ONEOK with an Outperform rating and lowered the price target from $115 to $110.

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