Wall Street is often seen as a playground for big institutional investors, but there are hidden treasures for retail investors too. If you’re looking for ways to earn passive income, pay attention to what the “smart money” is up to.
Vanguard Strikes Gold with Rithm Capital Corp
Among the large institutional investors, The Vanguard Group has struck gold with its investment in Rithm Capital Corp (NYSE:RITM). The recent 13F filings have revealed an intriguing story.
Vanguard’s $11.56 Million Windfall from RITM’s Dividends
In the second quarter, The Vanguard Group made an impressive $11.56 million from Rithm Capital’s dividend payment of 25 cents per share. This massive windfall came as The Vanguard Group owned more than 46.25 million shares of the company.
Retail Investors’ Path to Monthly Income
While most retail investors can’t amass millions of shares like institutional giants, RITM’s 10.11% dividend yield opens doors to an enticing opportunity for generating monthly income.
Setting Your Income Goals with RITM’s Dividends
If your aim is to earn $500 per month from RITM’s dividends, which sums up to $6,000 annually, you’d need approximately 5,882 shares. This translates to an investment of around $59,405 at the current share prices.
A More Modest Approach for Monthly Income
For those looking for a more modest monthly income of $100, you’d require 1,176 shares, with a more affordable investment of $11,881.
Understanding the Dynamics of Dividend Yield
It’s essential to note that dividend yields can fluctuate over time, influenced by changes in both dividend payments and stock prices.
The Calculation Behind Dividend Yield
Dividend yield is calculated by dividing the annual dividend payment by the current stock price. As stock prices change, the dividend yield also changes accordingly.
Real-World Scenarios
For example, if a stock pays an annual dividend of $2 and its current price is $50, the 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).
Impact of Changing Dividend Payments
Keep in mind that the dividend payment itself can change over time, which can further impact the dividend yield. If a company increases its dividend payment, the dividend yield will rise, even if the stock price remains constant. Conversely, if a company decreases its dividend payment, the yield will drop.
Wall Street Insights 2023
This article is brought to you by Benzinga, your source for financial news and information. Please note that Benzinga does not provide investment advice.
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In a world where Wall Street’s secrets are revealed, The Vanguard Group’s success with Rithm Capital Corp stands as a testament to the potential opportunities that even retail investors can tap into. Whether you dream of substantial monthly income or seek a more modest financial boost, understanding the dynamics of dividend yields and stock prices can be your key to unlocking hidden treasures in the world of finance. So, why wait? Dive into Wall Street’s hidden income secrets today!