Pfizer Inc. (NYSE:PFE) shares closed almost flat on Friday, but lost around 44% during 2023.

Pfizer recently announced the completion of its acquisition of Seagen Inc (NASDAQ:SGEN) for $229 per share at a total value of approximately $43 billion.

Pfizer recently provided its full-year 2024 guidance, which includes the expected financial impact from the Seagen transaction. For FY24, the pharma giant expects revenue of $58.5 billion-$61.5 billion, including the expected contribution from the Seagen acquisition versus the consensus of $63.17 billion.

With the recent buzz around Pfizer, some investors may be eyeing potential gains from the company’s dividends. As of now, Pfizer offers an annual dividend yield of 5.84%, which is a quarterly dividend amount of 42 cents per share ($1.68 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 $102,809 or around 3,571 shares. For a more modest $100 per month or $1,200 per year, you would need $20,556 or around 714 shares.

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To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($1.68 in this case). So, $6,000 / $1.68 = 3,571 ($500 per month), and $1,200 / $1.68 = 714 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.

PFE Price Action: Shares of Pfizer closed flat at $28.79 on Friday.

Read More: Passive income investments are one of the most trusted methods for riding out a recession, so it’s no surprise that people are turning to high-yield real estate notes that pay a fixed 7.5% to 9%.

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How To Earn $500 A Month From Pfizer Stock