Fidelity National Information Services Inc. (NYSE:FIS) stock was trading at $57.56 in the early hours of Nov. 29. Although the stock gained roughly 19% in the last month, it is closer to the lower threshold of its 52-week price range — $46.91 to $79.32.
With a payout of $2.15, Fidelity’s dividend yield is approximately 3.77%. Its 10-Q filing on Nov. 7, reported $926 million in dividend payments for the nine months from January to September. The payments have increased by $68 million or 8% compared to the same period in 2022.
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How Can You Earn $500 Per Month As An FIS Investor?
Assuming your target is to make $500 per month — $6,000 annually — from Fidelity National dividends, you need to invest about $159,151. At $57.56 a share, this translates to holding about 2,765 shares. But if you reduce your target to a moderate $100 per month, the investment value is $31,830 or 553 shares.
Estimating the investment value from dividend yields: Your investment value estimate can be derived using two key variables — the desired annual income of $6,000 or $1,200 — and the dividend yield of 3.77% for Fidelity National. The dividend yield is a percentage calculated by dividing the annual dividend payments by the market price of a stock.
To earn $500 per month, your investment is close to $159,151 ($6,000 / 0.0377) and $ 31,830 ($1,200 / 0.0377) if you opt for a moderate $100 monthly income.
When estimating your investment value, you should note that the dividend yield can change over time. This change can be attributed to the movement in stock prices as well as the dividend payments over time. These calculations have not considered the capital appreciation of a stock. If those are not factored into the capital appreciation, the dividend value and its yield are positively correlated.
Assume a stock paying $2 as an annual dividend is trading at $50. The dividend yield would be $2/$50 or 4%. When the stock price jumps to $60, the dividend yield drops to $2/$60 or 3.33%. If the stock price falls to $40, this will trigger an inverse effect and increase the dividend yield to 5% ($2/$40). As fluctuations in stock price impact the yield, changes in the company’s dividend policies also affect the yield.
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This article How To Earn $500 Per Month From Fidelity National Information Services (NYSE: FIS) Stock originally appeared on Benzinga.com
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