Constellation Brands, Inc. (NYSE:STZ) will release its fourth-quarter earnings results after the closing bell on Wednesday, April 9.
Analysts expect the company to report quarterly earnings at $2.28 per share, up from $2.26 per share in the year-ago period. Constellation Brands projects to report quarterly revenue at $2.13 billion, compared to $2.14 billion a year earlier, according to data from Benzinga Pro.
On April 3, Roth MKM analyst Bill Kirk maintained Constellation Brands with a Buy rating and lowered the price target from $284 to $256.
With the recent buzz around the company, some investors may be eyeing potential gains from its dividends, too. As of now, Constellation offers an annual dividend yield of 2.36%, which is a quarterly dividend of $1.01 per share ($4.04 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 $253,876 or around 1,485 shares. For a more modest $100 per month or $1,200 per year, you would need $50,775 or around 297 shares.
To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($4.04 in this case). So, $6,000 / $4.04 = 1,485 ($500 per month), and $1,200 / $4.04 = 297 shares ($100 per month).
View more earnings on STZ
Note that dividend yield can change on a rolling basis, as the dividend payment and 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.
STZ Price Action: Shares of Constellation Brands fell 0.9% to close at $170.96 on Tuesday.
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