Benzinga - by Lisa Levin, Benzinga Editor.
Deere & Co (NYSE: DE) reported upbeat earnings for its fourth quarter on Wednesday.
Net sales and revenue fell 1% Y/Y to $15.41 billion, beating the consensus of $13.69 billion. EPS of $8.26 surpassed the consensus of $7.47, according to data from Benzinga Pro.
For FY24, Deere expects net income of $7.75 billion-$8.25 billion, versus market estimates of around $9.33 billion.
With Deere reporting upbeat quarterly earnings, some investors may be eyeing potential gains from the company’s dividends. As of now, Deere has a dividend yield of 1.46%, which is a quarterly dividend amount of $1.35 a share ($5.40 a year).
To figure out how to earn $500 monthly from Deere dividends, we start with the yearly target of $6,000 ($500 x 12 months).
Next, we take this amount and divide it by Deere $5.40 dividend: $6,000 / $5.40 = 1,111 shares
So, an investor would need to own approximately $411,914 worth of Deere, or 1,111 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 / $5.40 = 222 shares, or $82,309 to generate a monthly dividend income of $100.
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Note that dividend yield can change on a rolling basis, as the dividend payment and the 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 the same. Similarly, if a company decreases its dividend payment, the dividend yield will decrease.
DE Price Action: Shares of Deere fell 3.1% to close at $370.76 on Wednesday.
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