How to Make $500 a Month in Constellation Brands Stock Ahead of the First Quarter Earnings Report – Constellation Brands (NYSE:STZ)

Constellation Brands, Inc. STZ will release its first-quarter financial results before the stock market opens on Wednesday.

Analysts expect the Victor, New York-based company to post quarterly profit at $3.46 per share, compared with $2.91 per share in the year-ago period. Constellation will have revenue of $2.68 billion for the quarter, according to Benzinga Pro.

On June 20, UBS analyst Peter Grom reiterated a Buy rating on Constellation shares and lowered the target price from $320 to $315, while JPMorgan analyst Andrea Teixeira lowered the target price from $296 to $291.

Given the recent buzz surrounding Constellation Brands, some investors may also be looking at potential dividend gains for the company. Constellation Brands currently offers an annual dividend yield of 1.57%. This translates to a quarterly dividend of $1.01 per share ($4.04 per year).

So how can investors take advantage of the dividend yield and consistently earn $500 a month?

To earn $500 a month or $6,000 a year in dividends alone, you would need an investment of about $382,061, or about 1,485 shares. For a more modest $100 a month or $1,200 a year, you would need $76,412, or about 297 shares.

Read this: Wall Street’s Most In-Depth Analysts Give Their Opinion on 3 Healthcare Stocks With Dividend Yields Above 3%

To count: Divide the desired annual income ($6,000 or $1,200) by the dividend (in this case, $4.04). So, $6,000 / $4.04 = 1,485 ($500 per month) and $1,200 / $4.04 = 297 shares ($100 per month).

Keep in mind that the dividend yield can change cyclically because both the dividend payment and the share price fluctuate over time.

How it’s working: The dividend yield is calculated by dividing the annual dividend amount paid 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 will be 4% ($2/$50). However, if the stock price increases to $60, the dividend yield will decrease to 3.33% ($2/$60). Conversely, if the stock price decreases to $40, the dividend yield will increase to 5% ($2/$40).

Similarly, changes in dividend payments can affect profitability. If a company increases its dividend, profitability will also increase, provided the share price remains the same. Conversely, if dividend payments decrease, profitability will also decrease.

STZ price action: Constellation Brands shares rose 0.5% on Friday to close at $257.28.

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