As Goldman Sachs Group, Inc. (GS) prepares to release its third-quarter earnings on Tuesday, October 15th, investors are taking notice of the firm’s annual dividend yield of 2.32%. This translates to a quarterly dividend payment of $3.00 per share, or $12.00 annually.
For those seeking to generate passive income through dividends, here’s a breakdown of how many Goldman Sachs shares you would need to own to earn a monthly dividend income of $500 or $100.
Targeting a $500 Monthly Dividend:
To earn $500 monthly, you would need to aim for a yearly dividend income of $6,000 ($500 x 12 months). Divide this target by Goldman Sachs’ annual dividend per share ($12.00): $6,000 / $12.00 = 500 shares. Therefore, owning 500 Goldman Sachs shares, valued at approximately $258,150 (based on Friday’s closing price of $516.30), would generate a monthly dividend income of $500.
A More Conservative Goal of $100 Monthly:
For a more achievable goal of $100 monthly, or $1,200 annually, the calculation remains the same: $1,200 / $12.00 = 100 shares. This means you would need to own 100 Goldman Sachs shares, worth around $51,630, to generate a monthly dividend income of $100.
Understanding Dividend Yield Fluctuations:
It’s important to remember that dividend yield is not static and can change over time due to fluctuations in both the dividend payment and the stock price. The dividend yield is calculated by dividing the annual dividend payment by the current stock price. As the stock price rises, the dividend yield decreases, and vice versa. Similarly, if a company increases its dividend payment, the yield will rise, and it will decrease if the company reduces its dividend payment.
Goldman Sachs Earnings Expectations:
Analysts anticipate Goldman Sachs to report quarterly earnings of $7.03 per share for the third quarter, marking an increase from $5.47 per share in the same period last year. Revenue is projected to reach $11.87 billion for the recent quarter, a slight improvement from $11.82 billion a year ago.
Recent Price Action and Analyst Sentiment:
Goldman Sachs shares closed at $516.30 on Friday, representing a 2.5% gain. On October 9th, JMP Securities analyst Devin Ryan maintained his Market Outperform rating on Goldman Sachs and raised the price target from $525 to $550, reflecting optimistic sentiment toward the firm’s future prospects.