20-Year Pro Trader Reveals His "MoneyLine"
Ditch your indicators and use the "MoneyLine". A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.
Constellation Brands, Inc. (NYSE:STZ) is set to release earnings results for its fourth quarter (Q4) before the opening bell on April 11, 2024.
Some investors may be eyeing potential gains from the Victor, New York-based company’s dividends.
Constellation currently offers an annual dividend yield of 1.34%, which is a quarterly dividend amount of 89 cents per share ($3.56 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 $447,587 or around 1,685 shares. For a more modest $100 per month or $1,200 per year, you would need $89,517 or around 337 shares.
To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($3.56 in this case). So, $6,000 / $3.56 = 1,685 ($500 per month), and $1,200 / $3.56 = 337 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.
STZ Price Action: Shares of Constellation Brands gained 0.5% to close at $265.63 on Friday.
This week, analysts expect the beer and spirits company to report quarterly earnings at $2.09 per share, up from $1.98 per share in the year-ago period.
Constellation is projected to report quarterly revenue of $2.1 billion, compared to $2 billion in the year-earlier quarter, according to data from Benzinga Pro.
On April 5, Barclays analyst Lauren Lieberman maintained Constellation Brands with an Overweight and lowered the price target from $296 to $294.
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Image: Constellation Brands
20-Year Pro Trader Reveals His "MoneyLine"
Ditch your indicators and use the "MoneyLine". A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.
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