- A more conservative goal of $100 monthly dividend income would require 185 shares of Deere.
- An investor would need to own $468,417 worth of Deere to generate a monthly dividend income of $500.
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Analysts expect the Moline, Illinois-based company to report quarterly earnings at $4.59 per share, down from $6.29 per share in the year-ago period. Deere projects to report quarterly revenue of $10.33 billion, compared to $11.39 billion a year earlier, according to data from Benzinga Pro.
With the recent buzz around Deere, some investors may be eyeing potential gains from the company's dividends too. Currently, Deere offers an annual dividend yield of 1.28% — a quarterly dividend amount of $1.62 per share ($6.48 a year).
So, how can investors capitalize on its dividend yield to earn a regular $500 monthly?
To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $468,417 or around 926 shares. For a more modest $100 per month or $1,200 per year, you would need $93,582 or around 185 shares.
To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($6.48 in this case). So, $6,000 / $6.48 = 926 ($500 per month), and $1,200 / $6.48 = 185 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.
DE Price Action: Shares of Deere fell 0.2% to close at $505.85 on Tuesday.
On July 15, Oppenheimer analyst Kristen Owen maintained Deere with an Outperform rating and raised the price target from $555 to $560.
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