Shares of Pfizer Inc ( PFE ). closed higher during Thursday's session, with the company's stock adding around 10% over the past month.

Pfizer ( PFE ) recently launched a multi-year cost reduction initiative aimed at saving approximately $1.5 billion by the end of 2027. This new program builds upon a $4 billion cost reduction plan announced last year.

On May 1, Pfizer ( PFE ) reported better-than-expected first-quarter financial results, posting adjusted EPS of 82 cents. That’s down 33% year over year, beating the consensus of 54 cents.

With the recent buzz around Pfizer ( PFE ), some investors may be eyeing potential gains from the company's dividends. Pfizer ( PFE ) currently has a dividend yield of 5.96% — a quarterly dividend of 42 cents a share ($1.68 a year).

To figure out how to earn $500 monthly from Pfizer ( PFE ), we start with a yearly target of $6,000 ($500 x 12 months).

Next, we take this amount and divide it by Pfizer's ( PFE ) $1.68 dividend: $6,000 / $1.68  = 3,571 shares

So, an investor would need to own approximately $100,702 worth of Pfizer ( PFE ), or 3,571 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 / $1.68 = 714 shares, or $20,135 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.

PFE Price Action: Shares of Pfizer ( PFE ) gained 1.4% to close at $28.20 on Thursday.

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