Benzinga - by Lisa Levin, Benzinga Editor.
PriceSmart, Inc. (NASDAQ: PSMT), on Monday, reported downbeat earnings for its fiscal fourth quarter of 2023, while sales topped estimates.
PriceSmart posted adjusted earnings of 65 cents per share, missing market estimates of 85 cents per share. The company’s quarterly revenue came in at $1.118 billion, versus expectations of $1.096 billion.
With PriceSmart reporting quarterly earnings, some investors may be eyeing potential gains from the company’s dividends. As of now, PriceSmart has a dividend yield of 1.28%, or $0.92 a year.
To figure out how to earn $500 monthly from PriceSmart dividends, we start with the yearly target of $6,000 ($500 x 12 months).
Next, we take this amount and divide it by PriceSmart $0.92 dividend: $6,000 / $0.92 = 6,522 shares
So, an investor would need to own approximately $467,432 worth of PriceSmart, or 6,522 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 / 0.92 = 1,304 shares, or $93,458 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.
PSMT Price Action: Shares of PriceSmart fell 0.7% to close at $71.67 on Monday.
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