Benzinga - by Avi Kapoor, Benzinga Staff Writer.
Conagra Brands Inc (NYSE: CAG) reported mixed financial results for its second quarter and cut 2024 guidance.
The Chicago-based reported a second-quarter FY24 sales decline of 3.2% year-on-year to $3.21 billion, missing the analyst consensus estimate of $3.24 billion. Adjusted EPS of 71 cents beat the consensus of 68 cents, according to data from Benzinga Pro.
Conagra lowered its FY24 organic net sales outlook from a growth of 1% to a decline of 1% - 2%. The company also cut its FY24 adjusted EPS outlook from $2.70 - $2.75 to $2.60 - $2.65 versus the estimate of $2.67.
With the recent buzz around Conagra Brands, some investors may be eyeing potential gains from the company’s dividends too. As of now, Conagra Brands offers an annual dividend yield of 4.87%, which is a quarterly dividend amount of 35 cents per share ($1.40 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 $123,094 or around 4,286 shares. For a more modest $100 per month or $1,200 per year, you would need $24,613 or around 857 shares.
Read This: $1M Bet On This Healthcare Stock? Check Out These 3 Penny Stocks Insiders Are Aggressively Buying
To Calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($1.40 in this case). So, $6,000 / $1.40 = 4,286 ($500 per month), and $1,200 / $1.40 = 857 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.
CAG Price Action: Shares of Conagra Brands fell 1.9% to close at $28.72 on Thursday.
Read More: Hedge funds intend to snatch all pre-IPO shares of future AI unicorns before you can. But there is one venture product investing on your behalf.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.