Benzinga - by Lisa Levin, Benzinga Editor.
Guess?, Inc. (NYSE: GES) reported downbeat earnings for the third quarter on Tuesday.
Guess? reported quarterly earnings of 49 cents per share, below the analyst consensus estimate of 62 cents per share, according to data from Benzinga Pro. The company reported quarterly sales of $651.2 million, missing market expectations of $656.03 million.
The company lowered its full-year 2024 outlook, expecting revenue growth between 1.8% and 2.4% and adjusted earnings per share between $2.67 and $2.74.
With the buzz around Guess following quarterly earnings, some investors may be eyeing potential gains from the company’s dividends. As of now, Guess offers an annual dividend yield of 5.06%, which is a quarterly dividend amount of 30 cents per share ($1.20 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 $118,600 or around 5,000 shares. For a more modest $100 per month or $1,200 per year, you would need $23,720 or around 1,000 shares.
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To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($1.20 in this case). So, $6,000 / $1.20 = 5,000 ($500 per month), and $1,200 / $1.20 = 1,000 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.
GES Price Action: Shares of Guess fell 1.7% to close at $23.72 on Tuesday.
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