Benzinga - by Lisa Levin, Benzinga Editor.
Tyson Foods, Inc. (NYSE: TSN) posted better-than-expected earnings for its fourth quarter on Monday.
Tyson Foods posted quarterly earnings of 37 cents per share, beating market estimates of 29 cents per share. The company’s quarterly sales came in $13.35 billion, versus expectations of $13.73 billion.
Tyson said it sees total company adjusted operating income of $1 billion to $1.5 billion in FY24.
With the buzz around Tyson following upbeat quarterly earnings, some investors may be eyeing potential gains from the company’s dividends too. As of now, Tyson offers an annual dividend yield of 4.21%, which is a quarterly dividend amount of 49 cents per share ($1.92 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 $142,563 or around 3,125 shares. For a more modest $100 per month or $1,200 per year, you would need $28,513 or around 625 shares.
Read This: Cramer Says This Cybersecurity Company Is 'Doing Terrific,' He Expects A 'Very Good Quarter'
To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($1.92 in this case). So, $6,000 / $1.92 = 3,125 ($500 per month), and $1,200 / $1.92 = 625 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.
TSN Price Action: Shares of Tyson Foods fell 2.8% to close at $45.62 on Monday.
Check This Out: Top 5 Consumer Stocks That Could Blast Off This Month
Photo: Shutterstock
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.