How Much Would It Take To Earn $100 A Month From Summit Hotel Properties Stock

In the ever-evolving world of real estate investment trusts (REITs), Summit Hotel Properties, Inc. (NYSE: INN) stands out as a beacon of stability and growth. With a portfolio of 97 premium-branded lodging properties, the company has consistently delivered value to its shareholders. But how much would it take to earn $100 a month from Summit Hotel Properties stock? Let's dive into the numbers and explore the ethical implications of investing in this sector.

Summit Hotel Properties recently declared a cash dividend for the fourth quarter of 2024, amounting to $0.08 per share of common stock. This dividend represents an annualized dividend yield of 4.8 percent based on the closing price of shares on January 22, 2025. To put this into perspective, let's calculate the annual dividend per share:
- Quarterly dividend: $0.08 per share
- Annual dividend: $0.08 * 4 = $0.32 per share

Next, we need to determine the stock price on January 22, 2025. Using the annualized dividend yield, we can find the stock price:
- Annualized dividend yield: 4.8%
- Annual dividend per share: $0.32

Using the formula for dividend yield:
\[ \text{Dividend Yield} = \left( \frac{\text{Annual Dividend per Share}}{\text{Stock Price}} \right) \times 100 \]

Rearranging the formula to solve for the stock price:
\[ \text{Stock Price} = \frac{\text{Annual Dividend per Share}}{\text{Dividend Yield}} \times 100 \]
\[ \text{Stock Price} = \frac{0.32}{0.048} \]
\[ \text{Stock Price} = 6.67 \]

Now, let's calculate how many shares are needed to earn $100 per month in dividends:
- Monthly dividend needed: $100
- Annual dividend needed: $100 * 12 = $1200
- Annual dividend per share: $0.32

Number of shares needed:
\[ \text{Number of Shares} = \frac{\text{Annual Dividend Needed}}{\text{Annual Dividend per Share}} \]
\[ \text{Number of Shares} = \frac{1200}{0.32} \]
\[ \text{Number of Shares} = 3750 \]

Therefore, an investor would need to purchase 3,750 shares of Summit Hotel Properties to earn $100 per month in dividends, given the current dividend payout and stock price.



However, the question of how much it takes to earn $100 a month from Summit Hotel Properties stock goes beyond mere financial calculations. It raises ethical questions about the sustainability of dividend payouts and the long-term viability of the company. As investors, we must consider the broader implications of our investments. Are we supporting a company that prioritizes shareholder returns over stakeholder welfare? Or are we investing in a company that balances profitability with social responsibility?

Summit Hotel Properties has a strong track record of dividend payouts, with an annualized dividend yield of 4.8 percent. This yield is competitive within the lodging industry, but it is not without risks. The company's forward-looking statements highlight various risks and uncertainties, including the state of the U.S. economy and supply and demand in the hotel industry. These factors could impact the company's ability to maintain its dividend payouts in the future.

In conclusion, earning $100 a month from Summit Hotel Properties stock requires a significant investment of 3,750 shares. While the company's dividend yield is competitive, investors must consider the ethical implications of their investments. Are we supporting a company that prioritizes shareholder returns over stakeholder welfare? Or are we investing in a company that balances profitability with social responsibility? The answer to these questions will shape the future of Summit Hotel Properties and the broader lodging industry.