Dollar General Corp (NYSE: DG) reported better-than-expected third-quarter results on Thursday.
Dollar General reported third-quarter FY23 sales growth of 2.4% year-on-year to $9.69 billion, beating the analyst consensus estimate of $9.65 billion. EPS of $1.26 beat the consensus estimate of $1.19, according to Benzinga Pro.
With the recent buzz around Dollar General following upbeat earnings, some investors may be eyeing potential gains from the company’s dividends. As of now, Dollar General has a dividend yield of 1.78%, which is a quarterly dividend amount of 59 cents a share ($2.36 a year).
To figure out how to earn $500 monthly from Smucker dividends, we start with the yearly target of $6,000 ($500 x 12 months).
Next, we take this amount and divide it by Dollar General $2.36 dividend: $6,000 / $2.36 = 2,542 shares
So, an investor would need to own approximately $336,307 worth of Dollar General, or 2,542 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 / $2.36 = 508 shares, or $67,208 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.
DG Price Action: Shares of Dollar General fell 1.2% to close at $132.30 on Thursday.
Read More: Passive income investments are one of the most trusted methods for riding out a recession, so it’s no surprise that people are turning to high-yield real estate notes that pay a fixed 7.5% to 9%.
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This article How To Earn $500 A Month From Dollar General Stock After Upbeat Earnings originally appeared on Benzinga.com
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