How to Make $500 a Month on Alphabet Stock Ahead of Q3 Earnings – Alphabet (NASDAQ:GOOGL)

Alphabet Inc. GOOG GOOGL will report third-quarter results after the closing bell on Tuesday.

Analysts expect the Mountain View, California-based bank to report quarterly profit of $1.84 per share, up from $1.55 per share in the year-ago period. According to data from Benzinga Pro, Alphabet expects revenue of $86.3 billion for the current quarter, compared to $76.69 billion last year.

Given the recent enthusiasm for Alphabet ahead of its quarterly results, some investors may also be paying attention to potential gains from the company's dividends. Currently, Alphabet offers an annual dividend yield of 0.48%, which translates to a quarterly dividend amount of 20 cents per share (80 cents per year).

To figure out how to make $500 a month with Alphabet, let's start with the annual goal of $6,000 ($500 x 12 months).

Next, we divide this amount by Alphabet's dividend of $0.80: $6,000 / $0.80 = 7,500 shares.

So an investor would need to own approximately $1,250,400 worth of Alphabet, or 7,500 shares, to earn $500 in monthly dividend income.

Assuming a more conservative goal of $100 per month ($1,200 per year), we do the same calculation: $1,200 / $0.80 = 1,500 shares, or $250,080, to one to earn monthly dividend income of $100.

Note that the dividend yield can change continuously as both the dividend payment and the share price fluctuate over time.

The dividend yield is calculated by dividing the annual dividend payment by the current share price. When the share price changes, the dividend yield also changes.

For example, if a stock pays an annual dividend of $2 and its current price is $50, its dividend yield is 4%. However, if the stock price rises to $60, the dividend yield would decrease to 3.33% ($2/$60).

Conversely, if the stock price falls to $40, the dividend yield would increase to 5% ($2/$40).

Additionally, the dividend payment itself can change over time, which can also affect the dividend yield. If a company increases its dividend payout, the dividend yield increases even if the share price remains the same. Likewise, if a company lowers its dividend payment, the dividend yield decreases.

GOOGL price promotion: Shares of Alphabet rose 0.9% to close at $166.72 on Monday.

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