Some of the company’s investors may be eyeing potential gains from the company’s dividends. Currently, RPM has an annual dividend yield of 2.2%. That’s a quarterly dividend amount of 54 cents per share ($2.16 a year).
To figure out how to earn $500 monthly from RPM, start with the yearly target of $6,000 ($500 x 12 months).
Next, divide that amount by RPM’s $2.16 dividend: $6,000 / $2.16 = 2,778 shares.
So, an investor would need to own approximately $272,161 worth of RPM, or 2,778 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 / $2.16 = 556 shares, or $54,471 to generate a monthly dividend income of $100.
Note that …