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

SLB N.V. (NYSE:SLB) will release earnings for the fourth quarter before the opening bell on Friday, Jan. 23.

Analysts expect the company to report fourth-quarter earnings of 74 cents per share. That's down from 92 cents per share in the year-ago period. The consensus estimate for SLB's quarterly revenue is $9.55 billion (it reported $9.28 billion last year), according to Benzinga Pro.

On Wednesday, Stifel analyst Stephen Gengaro maintained SLB with a Buy rating and raised the price target from $48 to $52.

With the recent buzz around SLB, some investors may be eyeing potential gains from the company's dividends too. As of now, SLB has an annual dividend yield of 2.35%, which is a quarterly dividend amount of 28.5 cents per share ($1.14 a year).

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

Next, we take this amount and divide it by SLB's $1.14 dividend: $6,000 / $1.14 = 5,263 shares.

So, an investor would need to own approximately $255,361 worth of SLB, or 5,263 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 / $1.14 = 1,053 shares, or $51,092 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.

SLB Price Action: Shares of SLB gained by 4.5% to close at $48.52 on Wednesday.

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