How To Earn $500 A Month From McCormick Stock Ahead Of Q1 Earnings
Take Stock Of The Week Ahead

Get all the latest Share Market trends and news to set you up for the week ahead.

Zinger Key Points
  • A more conservative goal of $100 monthly dividend income would require owning 667 shares of McCormick.
  • An investor would need to own $267,207 worth of McCormick to generate a monthly dividend income of $500.

McCormick & Company, Incorporated MKC will release its first-quarter financial results before the opening bell on Tuesday, March 25.

Analysts expect the company to report quarterly earnings at 64 cents per share, up from 63 cents per share in the year-ago period. McCormick projects quarterly revenue of $1.61 billion, compared to $1.6 billion a year earlier, according to data from Benzinga Pro.

On Jan. 27, Barclays analyst Andrew Lazar maintained McCormick with an Equal-Weight rating and lowered the price target from $85 to $82.

With the recent buzz around McCormick, some investors may be eyeing potential gains from the company's dividends, too. Currently, McCormick offers an annual dividend yield of 2.25% and a quarterly dividend of 45 cents per share ($1.80 a year).

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

Next, we take this amount and divide it by McCormick's $1.80 dividend: $6,000 / $1.80 = 3,333 shares.

So, an investor would need to own approximately $267,207 worth of McCormick, or 3,333 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 / $1.80 = 667 shares, or $53,473 to generate a monthly dividend income of $100.

Note that dividend yield can change on a rolling basis, as the dividend payment and 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 unchanged. Similarly, if a company decreases its dividend payment, the dividend yield will decrease.

MKC Price Action: Shares of McCormick fell by 0.7% to close at $80.17 on Friday.

Read More:

Photo: Shutterstock

Comments
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise