How to Make $500 a Month in Steelcase Stock Ahead of the First Quarter Earnings Report

Steelcase Inc. (NYSE:SCS) will release first-quarter earnings results after the closing bell on Wednesday.

Analysts expect the Grand Rapids, Mich.-based company to report quarterly earnings of 10 cents per share, down from 9 cents per share in the year-ago period. According to Benzinga Pro, the company is projected to report revenue of $729.13 million this quarter.

On Friday, benchmark analyst Reuben Garner upgraded Steelcase from Hold to Buy while announcing a $17 price target.

With the recent buzz around Steelcase, some investors may also see potential dividend gains from the company. Steelcase currently offers an annual dividend yield of 3.23%, which equates to a quarterly dividend of 10 cents per share (40 cents annually).

So how can investors use the dividend yield to consistently receive $500 per month?

To earn $500 a month or $6,000 a year in dividends alone, you would need an investment of about $186,000 or about 15,000 shares. For a more modest $100 a month or $1,200 a year, you would need $37,200, or about 3,000 shares.

Read this: Wall Street’s most accurate analysts rate 3 tech stocks with over 3% dividend yield

To count: Divide your desired annual income ($6,000 or $1,200) by the dividend ($0.40 in this case). So $6,000 / $0.40 = 15,000 ($500 per month) and $1,200 / $0.40 = 3,000 shares ($100 per month).

See more earnings at SCS

Keep in mind that the dividend yield can change continuously because both the dividend payment and the share 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 valued 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 will increase to 5% ($2/40).

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

SCS price action: Steelcase shares rose 0.6% on Friday, closing at $12.40.

Check this out: How to Find Dividend Stocks: Scan, Analyze and Capture with Benzinga Pro

Photo: Shuttersock

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