Analysts expect the Bentonville, Arkansas-based company to report quarterly earnings at 65 cents per share, up from 60 cents per share in the year-ago period. Walmart projects quarterly revenue of $179 billion, compared to $171.91 billion a year earlier, according to data from Benzinga Pro.
On Tuesday, Baird analyst Peter Benedict maintained Walmart with an Outperform and raised the price target from $100 to $115, while Piper Sandler analyst Peter Keith maintained the stock with an Overweight and boosted the price target from $93 to $118.
With the recent buzz around Walmart, some investors may be eyeing potential gains from the company’s dividends too. Currently, Walmart offers an annual dividend yield of 0.80%, a quarterly dividend amount of 21 cents per share (83 cents 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 $750,226 or around 7,229 shares. For a more modest $100 per month or $1,200 per year, you would need $150,066 or around 1,446 shares.
To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($0.83 in this case). So, $6,000 / $0.83 = 7,229 ($500 per month), and $1,200 / $0.83 = 1,446 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.
Price Action: Walmart’s shares fell 0.3%, closing at $103.78 on Tuesday.
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