How to Make $500 a Month in Constellation Brands Stocks Ahead of Q1 Earnings Report

How to Make $500 a Month in Constellation Brands Stock Ahead of Q1 Earnings Report

Constellation Brands, Inc. (NYSE:STZ) will release first-quarter financial results before the market opens on Wednesday.

Analysts expect the Victor, New York-based company to report quarterly earnings of $3.46 per share, down from $2.91 per share in the same period a year ago. Constellation’s revenue for the quarter will be $2.68 billion, according to Benzinga Pro.

On June 20, UBS analyst Peter Grom maintained Constellation with a buy and lowered the price target from $320 to $315, while JPMorgan analyst Andrea Teixeira lowered the price target from $296 to $291.

With the recent buzz surrounding Constellation Brands, some investors may also be on the lookout for potential dividend gains from the company. Constellation Brands currently offers an annual dividend yield of 1.57%. That’s a quarterly dividend amount 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 per month or $6,000 per year in dividends alone, you would need an investment of about $382,061, or about 1,485 shares. For a more modest $100 per month or $1,200 per year, you would need $76,412, or about 297 shares.

Read this: Wall Street’s Most Accurate Analysts Give Their Opinion on 3 Healthcare Stocks with Dividends Above 3%

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

It is important to remember that the dividend yield can change continuously because both the dividend payout and the stock price change over time.

How it’s working: Dividend yield is calculated by dividing the annual dividend payment 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 payouts can affect profitability. If a company increases its dividend, profitability will also increase, provided the share price remains the same. Conversely, if the dividend payout decreases, profitability will also decrease.

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

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This article How to Make $500 a Month Trading Constellation Brands Ahead of the First Quarter Earnings Report originally appeared on Benzinga.com