27% profits every 20 days?
This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.
Acuity Brands, Inc. (NYSE:AYI) is scheduled to release earnings results for its second quarter, before the opening bell on April 3, 2024.
Analysts expect the company to report quarterly earnings at $3.25 per share, up from $3.06 per share in the year-ago period. The company is projected to post revenue of $908.75 million for the quarter, according to data from Benzinga Pro.
On Jan. 25, Acuity Brands raised its quarterly dividend from 13 cents to 15 cents per share and the company's board also authorized an additional 3 million share repurchase.
With the recent buzz around Acuity Brands, some investors may be eyeing potential gains from the company’s dividends. As of now, Acuity Brands has a dividend yield of 0.23%, which is a quarterly dividend amount of 15 cents a share (60 cents a year).
To figure out how to earn $500 monthly from Acuity Brands, we start with the yearly target of $6,000 ($500 x 12 months).
Next, we take this amount and divide it by Acuity Brands’ $0.60 dividend: $6,000 / $0.60 = 10,000 shares
So, an investor would need to own approximately $2,651,400 worth of Acuity Brands, or 10,000 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 / $0.60 = 2,000 shares, or $530,280 to generate a monthly dividend income of $100.
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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.
AYI Price Action: Shares of Acuity Brands fell 1.3% to close at $265.14 on Thursday.
Read More: Jim Cramer Says Chevron Is Doing 'Pretty Well,' Will Give This Pharma Giant 'A Chance'
Image generated using artificial intelligence via Midjourney.
27% profits every 20 days?
This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.
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