there's an article that talks about how people can make $500 every month by owning a certain type of stock. the stock is from a company called L3Harris Technologies. to make the $500, people need to own a lot of shares of this company, around 1,293 shares to be exact. owning these shares means having a big part of the company. the article also says that owning these shares will also give people part of the company's profits every month, which is why they can make $500 every month. Read from source...
1. The article premise itself, earning $500 a month from L3Harris stock, is already questionable as it's based on a projected quarterly dividend of $1.16 per common share, which gives a dividend yield of 1.96%. This projected dividend income is heavily reliant on the performance of the company and market conditions, which makes it uncertain and risky.
2. The article assumes a more conservative goal of $100 monthly dividend income and estimates owning 259 shares of L3Harris Technologies would be required. It then calculates that an investor would need to own approximately $61,422 worth of L3Harris, or 259 shares, to generate a monthly dividend income of $100.
3. The article provides a calculation on how to earn $500 monthly from L3Harris Technologies by owning approximately 1,293 shares, or $306,635 worth of the company. The calculation assumes an annual dividend yield of $4.64, which is based on historical data and could fluctuate.
4. The article mentions L3Harris' dividend yield can change on a rolling basis as the dividend payment and stock price both fluctuate over time. This shows a lack of understanding of how dividend yields work and how they relate to a stock's price and performance.
5. The article does not take into consideration the risks associated with investing in stocks, such as market volatility, company performance, and economic conditions. It presents a one-sided view of investing in L3Harris stock, without providing a balanced assessment of the risks and potential downsides.
Overall, the article's approach to investing in L3Harris Technologies is overly simplistic, lacks critical analysis, and fails to take into account the risks and uncertainties associated with investing in stocks.
1. Purchase 1,293 shares of L3Harris Technologies to generate a monthly dividend income of $500. The total investment would be approximately $306,635.
2. For a more conservative goal, aim to generate a monthly dividend income of $100. Purchase 259 shares of L3Harris Technologies for a total investment of $61,422.
Risks:
- The stock market can be volatile, and the price of L3Harris Technologies may fluctuate.
- Dividend yields can change on a rolling basis, impacting the return on investment.
- Investors should always carefully consider their own financial situation and goals before making investment decisions.