Nucor Corporation (NYSE:NUE) will release earnings results for its third quarter, before the opening bell on Monday, Oct. 21.
Analysts expect the Charlotte, North Carolina-based company to report quarterly earnings at $1.47 per share, down from $4.57 per share in the year-ago period. Nucor projects to report revenue of $7.28 billion for the recent quarter, according to data from Benzinga Pro.
On Oct. 9, JPMorgan analyst Bill Peterson maintained Nucor with an Overweight and lowered the price target from $174 to $170.
With the recent buzz around Nucor, some investors may be eyeing potential gains from the company’s dividends too. As of now, Nucor offers an annual dividend yield of 1.37%, which is a quarterly dividend amount of 54 cents per share ($2.16 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 $439,174 or around 2,778 shares. For a more modest $100 per month or $1,200 per year, you would need $87,898 or around 556 shares.
To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($2.16 in this case). So, $6,000 / $2.16 = 2,778 ($500 per month), and $1,200 / $2.16 = 556 shares ($100 per month).
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.
NUE Price Action: Shares of Nucor gained 2.5% to close at $158.09 on Thursday.
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Courtesy of Nucor Corporation
