Investing in stocks can be a great way to generate passive income, and one company that offers this opportunity is Pinnacle West Capital Corporation (NYSE: PNW). Pinnacle West provides retail and wholesale electric services primarily in Arizona, generating, transmitting, and distributing electricity using various sources such as coal, nuclear, gas, oil, and solar generating facilities.
The company is set to report its Q4 2024 earnings on February 25, with Wall Street analysts expecting an EPS of ($0.15), down from $0.00 in the previous year. Quarterly revenue is projected to be $1.05 billion, up from $991.57 million in the year-ago period. Despite the expected decrease in EPS, Pinnacle West Capital remains a strong player in the electric services industry.
One attractive feature of investing in Pinnacle West Capital stock is its dividend yield of 4.38%. Over the last 12 months, the company has paid out $3.58 per share in dividends. This means that if you want to earn $100 per month in passive income from Pinnacle West Capital dividends, you would need to have an investment value of approximately $27,397, which equates to owning around 335 shares at $81.76 each.
Calculating the dividend yield is essential when considering dividend income. By dividing the annual dividend payments by the stock’s current price, investors can determine the yield. It’s important to note that the dividend yield can fluctuate over time due to changes in stock prices and dividend payments.
Pinnacle West Capital has a history of consistent dividend hikes, having raised its dividend consecutively for the last 13 years. This makes it an attractive option for income-focused investors looking to generate a steady income stream. With the potential for further dividend increases and a solid track record, Pinnacle West Capital stock presents an opportunity for investors seeking passive income.
In conclusion, investing in Pinnacle West Capital stock can be a lucrative way to earn passive income. By understanding the company’s financials, dividend yield, and growth potential, investors can make informed decisions about their investments. With the possibility of earning $100 per month in dividends, Pinnacle West Capital offers a compelling opportunity for those looking to build a diversified investment portfolio.
