Analysts expect the company to report quarterly earnings at $2.47 per share, up from $2.00 per share in the year-ago period. T-Mobile projects quarterly revenue of $20.62 billion, compared to $19.59 billion a year earlier, according to data from Benzinga Pro.
T-Mobile's prepaid brand Metro announced on Tuesday that starting April 24, the company is lowering prices across the board and launching four new plans: Metro Starter, Metro Starter Plus, Metro Flex Unlimited and Metro Flex Unlimited Plus.
With the recent buzz around T-Mobile, some investors may be eyeing potential gains from the company's dividends too. Currently, T-Mobile offers an annual dividend yield of 1.36%. That’s quarterly dividend amount of 88 cents per share ($3.52 a year).
To earn $500 monthly from T-Mobile, start with a yearly target of $6,000 ($500 x 12 months).
Next, we take this amount and divide it by T-Mobile's $3.52 dividend: $6,000 / $3.52 = 1,705 shares.
So, an investor would need to own approximately $442,192 worth of T-Mobile, or 1,705 shares to generate a monthly dividend income of $500.
Assuming a more conservative goal of $100 monthly ($1,200 annually), we do the same calculation: $1,200 / $3.52 = 341 shares, or $88,438 to generate a monthly dividend income of $100.
Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.
The dividend yield is calculated by dividing the annual dividend payment by the current stock price. As the stock price changes, the dividend yield will also change.
For example, if a stock pays an annual dividend of $2 and its current price is $50, its dividend yield would be 4%. However, if the stock price increases to $60, the dividend yield would decrease to 3.33% ($2/$60).
Conversely, if the stock price decreases to $40, the dividend yield would increase to 5% ($2/$40).
Further, the dividend payment itself can also change over time, impacting the dividend yield. If a company increases its dividend payment, the dividend yield will increase even if the stock price remains unchanged. Similarly, the dividend yield will decrease if a company decreases its dividend payment.
TMUS Price Action: Shares of T-Mobile gained by 0.4% to close at $259.35 on Wednesday.
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