How To Earn $500 A Month From Dollar General Stock Ahead Of Q4 Earnings
Analysts expect the company to report earnings of $1.64 per share. That's up from 87 cents per share in the year-ago period. The consensus estimate for Dollar General's quarterly revenue is $10.82 billion (it reported $10.3 billion last year), according to Benzinga Pro.
With the recent buzz around Dollar General, some investors may be eyeing potential gains from the company's dividends too. Currently, Dollar General has an annual dividend yield of 1.62%, with a quarterly dividend of 59 cents per share ($2.36 per year).
To earn $500 monthly from Dollar General, start with a yearly target of $6,000 ($500 x 12 months).
Next, we take this amount and divide it by Dollar General's $2.36 dividend: $6,000 / $2.36 = 2,542 shares.
So, an investor would need to own approximately $371,132 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 $74,168 to generate a monthly dividend income of $100.
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 rose by 0.3% to close at $146 on Tuesday.
Ahead of quarterly earnings, Piper Sandler analyst Peter Keith maintains Dollar General with a Neutral rating. He also raised the price target from $129 to $132.
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