Benzinga - by Avi Kapoor, Benzinga Staff Writer.
General Mills, Inc. (NYSE: GIS) is expected to post financial results for its fiscal 2024 second quarter, before the opening bell on Dec. 20, 2023.
Analysts expect the company to post quarterly earnings at $1.16 per share, up from year-ago earnings of $1.10 per share. The company’s revenue is expected to come in at $5.35 billion for the latest quarter, according to Benzinga Pro.
General Mills recently announced several changes to its senior leadership team. The company appointed Jon Nudi to a new role as Group President, Pet and International.
With the recent buzz around General Mills ahead of the earnings report, some investors may be eyeing potential gains from the company’s dividends. As of now, General Mills offers an annual dividend yield of 3.56%, which is a quarterly dividend amount of 59 cents per share ($2.36 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 $168,636 or around 2,542 shares. For a more modest $100 per month or $1,200 per year, you would need $33,701 or around 508 shares.
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To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($2.36 in this case). So, $6,000 / $2.36 = 2,542 ($500 per month), and $1,200 / $2.36 = 508 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.
GIS Price Action: Shares of General Mills gained 1.7% to close at $66.34 on Monday.
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