Walmart Inc. (NYSE: WMT ) will release earnings results for the third quarter, before the opening bell on Nov. 19 .
Analysts expect the Bentonville, Arkansas-based company to report quarterly earnings at 53 cents per share. That’s up from 51 cents per share in the year-ago period. Walmart projects to report quarterly revenue of $166.57 billion, compared to $159.44 billion a year earlier, according to data from Benzinga Pro .
On Friday, Jefferies analyst Corey Tarlowe maintained Walmart with a Buy rating and raised the price target from $90 to $100.
With the recent buzz around Walmart, some investors may be eyeing potential gains from the company's dividends, too. Walmart currently offers an annual dividend yield of 0.99%, which is a quarterly dividend amount of 20.75 cents per share (83 cents a year).
So, how can investors exploit its dividend yield to pocket a regular $500 monthly?
To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $609,043 or around 7,229 shares. For a more modest $100 per month or $1,200 per year, you would need $121,826 or around 1,446 shares.
To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend (83 cents). So, $6,000 / $0.83 = 7,229 ($500 per month), and $1,200 / $0.83 = 1,446 shares ($100 per month).
View more earnings on WMT
Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.
How that works: The dividend yield is computed by dividing the annual dividend payment by the stock’s current price.
For example, if a stock pays an annual dividend of $2 and is currently priced at $50, the dividend yield would be 4% ($2/$50). However, if the stock price increases to $60, the dividend yield drops to 3.33% ($2/$60). Conversely, if the stock price falls to $40, the dividend yield rises to 5% ($2/$40).
Similarly, changes in the dividend payment can impact the yield. If a company increases its dividend, the yield will also increase, provided the stock price stays the same. Conversely, if the dividend payment decreases, so will the yield.
WMT Price Action: Shares of Walmart fell 0.3% to close at $84.25 on Friday.
Read More:
Image via Shutterstock
UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily , plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets.
Get the latest stock analysis from Benzinga?
This article How To Earn $500 A Month From Walmart Stock Ahead Of Q3 Earnings originally appeared on Benzinga.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Walmart Inc. will release earnings results for the third quarter before the opening bell on Nov. 19.
To earn $500 per month or $6,000 annually from dividends alone, an investment of approximately $609,043 or around 7,229 shares would be needed. This is calculated by dividing the desired annual income ($6,000) by the dividend (83 cents).
Analysts expect Walmart to report quarterly earnings at 53 cents per share, up from 51 cents per share in the year-ago period, and quarterly revenue of $166.57 billion, compared to $159.44 billion a year earlier.
Walmart currently offers an annual dividend yield of 0.99%, which is a quarterly dividend amount of 20.75 cents per share (83 cents a year). To earn a modest $100 per month or $1,200 per year, an investment of $121,826 or around 1,446 shares would be needed.
The dividend yield is computed by dividing the annual dividend payment by the stock’s current price. Changes in the dividend payment and the stock price can impact the yield. If the stock price increases, the dividend yield drops, and if the stock price falls, the dividend yield rises. Similarly, if a company increases its dividend, the yield will also increase, provided the stock price stays the same.
