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How to make $500 a month on MSC Industrial shares before Q3 results are released

How to make 0 a month on MSC Industrial shares before Q3 results are released
How to make 0 a month on MSC Industrial shares before Q3 results are released

How to make $500 a month on MSC Industrial shares before Q3 results are released

How to make $500 a month on MSC Industrial shares before Q3 results are released

MSC Industrial Direct Co., Inc. (NYSE:MSM) is expected to release third-quarter earnings results on Tuesday, July 2, before the market opens.

Analysts expect the Beaverton, Oregon-based company to report quarterly earnings of $1.34 per share, down from $1.74 per share in the year-ago period. MSC Industrial is expected to report revenue of $982.22 million for the quarter, according to data from Benzinga Pro.

On June 17, Loop Capital analyst Chris Dankert downgraded MSC Industrial Direct from “buy” to “hold,” while Keybanc analyst Ken Newman downgraded the stock from “overweight” to “sector weight.”

Given the recent excitement surrounding MSC Industrial, some investors may also be eyeing potential gains from the company’s dividends. Currently, MSC Industrial offers an annual dividend yield of 4.26%. That equates to a quarterly dividend payout of 83 cents per share ($3.32 per year).

So how can investors use the dividend yield to earn a regular $500 per month?

To earn $500 per month or $6,000 per year from dividends alone, you would need an investment of approximately $140,964, or around 1,807 shares. For a more modest $100 per month or $1,200 per year, you would need $28,162, or around 361 shares.

Read this: Wall Street’s most accurate analysts spotlight three financial stocks with high dividend yields

View more earnings on MSM

Calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend (in this case $3.32). So $6,000 / $3.32 = $1,807 ($500 per month) and $1,200 / $3.32 = 361 shares ($100 per month).

Note that the dividend yield can change continuously as both the dividend payment and the share price fluctuate over time.

How it works: The dividend yield is calculated by dividing the annual dividend payout by the current share price.

For example, if a stock pays an annual dividend of $2 and is currently trading at $50, the dividend yield is 4% ($2/$50). However, if the stock price rises to $60, the dividend yield drops to 3.33% ($2/$60). Conversely, if the stock price falls to $40, the dividend yield increases to 5% ($2/$40).

Changes in dividend payouts can also affect returns. If a company increases its dividend, the returns also increase, provided the share price remains the same. Conversely, if the dividend payout decreases, the returns also decrease.

MSM price promotion: MSC Industrial Direct shares fell 1.1% to close at $78.01 on Thursday.

Look at that:

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This article How to Make $500 a Month on MSC Industrial Stock Ahead of Q3 Earnings Release originally appeared on Benzinga.com

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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