On Tuesday, Johnson & Johnson (NYSE:JNJ) announced results from the open-label Phase 2 SKIPPirr study, which evaluated additional prophylactic strategies to reduce the incidence of infusion-related reactions (IRRs) with intravenous (IV) Rybrevant (amivantamab-vmjw) in patients with advanced non-small cell lung cancer (NSCLC) with epidermal growth factor receptor (EGFR) exon 19 deletions (ex19del) or L858R substitution mutations.
The company, last month, agreed to acquire V-Wave for an upfront payment of $600 million, with the potential for additional regulatory and commercial milestone payments up to approximately $1.1 billion.
With the recent buzz around Johnson & Johnson, some investors may be eyeing potential gains from the company's dividends too. As of now, Johnson & Johnson offers an annual dividend yield of 3.01%. That's a quarterly dividend amount of $1.24 per share ($4.96 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 $199,432 or around 1,210 shares. For a more modest $100 per month or $1,200 per year, you would need $39,886 or around 242 shares.
To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($4.96 in this case). So, $6,000 / $4.96 = 1,210 ($500 per month), and $1,200 / $4.96 = 242 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.
JNJ Price Action: Shares of Johnson & Johnson fell 1.5% to close at $164.82 on Wednesday.
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