Benzinga - by Avi Kapoor, Benzinga Staff Writer.
FedEx Corporation (NYSE: FDX) is set to release earnings results for its third quarter, after the closing bell on March 21, 2024.
Analysts expect the Memphis, Tennessee-based company to report quarterly earnings at $3.46 per share, up from $3.41 per share in the year-ago period. FedEx is projected to post quarterly revenue of $22.06 billion, according to data from Benzinga Pro.
Following a notable split, FedEx and Amazon.com Inc (NASDAQ: AMZN) reportedly explored potential collaborations, seeking mutual benefits. Last year, discussions between the two behemoths revolved around FedEx accepting Amazon returns at its retail locations, enriching FedEx’s business portfolio, according to a WSJ report.
With the recent buzz around FedEx, some investors may be eyeing potential gains from the company’s dividends. As of now, FedEx has a dividend yield of 1.94%, which is a quarterly dividend amount of $1.26 a share ($5.04 a year).
To figure out how to earn $500 monthly from FedEx, we start with the yearly target of $6,000 ($500 x 12 months).
Next, we take this amount and divide it by FedEx $5.04 dividend: $6,000 / $5.04 = 1,190 shares
So, an investor would need to own approximately $309,388 worth of FedEx, or 1,190 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 / $5.04 = 238 shares, or $61,878 to generate a monthly dividend income of $100.
Also Read: Jim Cramer Says This EV Manufacturer Is 'Well-Run,' Recommends Selling iRobot
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.
FDX Price Action: Shares of FedEx gained 1.3% to close at $259.99 on Wednesday.
Read More: Insiders Buying Advance Auto Parts And 2 Other Stocks
Image: Pixabay
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.