Innovative Industrial Properties, Inc (NYSE:IIPR) shares closed slightly higher during Thursday’s session.
On March 15, Innovative Industrial Properties said its board of directors declared a first-quarter 2024 dividend of $1.82 per share of common stock.
The San Diego-based company reported better-than-expected earnings results for its fourth quarter on Feb. 26, 2024. Piper Sandler analyst Alexander Goldfarb maintained Innovative Industrial Properties with a Neutral and raised the price target from $85 to $103 following the release of quarterly earnings.
With the recent buzz around Innovative Industrial Properties, some investors may be eyeing potential gains from the company’s dividends. As of now, Innovative Industrial Properties has a dividend yield of 7.75%, which is a quarterly dividend amount of $1.82 a share ($7.28 a year).
To figure out how to earn $500 monthly from Innovative Industrial Properties, we start with the yearly target of $6,000 ($500 x 12 months).
Next, we take this amount and divide it by Innovative Industrial Properties’ $7.28 dividend: $6,000 / $7.28 = 824 shares
So, an investor would need to own approximately $77,357 worth of Innovative Industrial Properties, or 824 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 / $7.28 = 165 shares, or $15,490 to generate a monthly dividend income of $100.
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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, which can also impact the dividend yield. If a company increases its dividend payment, the dividend yield will increase even if the stock price remains the same. Similarly, if a company decreases its dividend payment, the dividend yield will decrease.
IIPR Price Action: Shares of Innovative Industrial Properties rose 0.3% to close at $93.88 on Thursday.
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