Ahead of Caterpillar Inc's (NYSE:CAT) second-quarter earnings report, set to be released before the opening bell on Tuesday, Aug. 4, some investors may be eyeing potential gains from the company’s dividends.
Currently, the construction equipment maker has an annual dividend yield of 0.80%, which is a quarterly dividend amount of $1.63 per share ($6.52 a year).
To figure out how to earn $500 monthly from Caterpillar, start with the yearly target of $6,000 ($500 x 12 months).
Next, take that amount and divide it by CAT’s $6.52 dividend: $6,000 / $6.52 = 920 shares.
So, an investor would need to own approximately $749,625 worth of Caterpillar, or 920 shares to generate a monthly dividend income of $500.
