How To Earn $500 A Month From Smith & Wesson Stock After Upbeat Earnings

Smith & Wesson Brands, Inc SWBI reported better-than-expected financial results on Thursday.

The company posted first-quarter earnings of 13 cents per share, beating market estimates of 5 cents per share. Quarterly sales came in $114.20 million versus expectations of $100.93 million.

With Smith & Wesson reporting strong quarterly earnings, some investors may be eyeing potential gains from the company’s dividends. As of now, Smith & Wesson has a dividend yield of 4.57%, which is a quarterly dividend amount of $0.12 a share ($0.48 a year).

To figure out how to earn $500 monthly from Smith & Wesson dividends, we start with the yearly target of $6,000 ($500 x 12 months).

Next, we take this amount and divide it by Smith & Wesson’s $0.48 dividend: $6,000 / $0.48 = 12,500 shares

So, an investor would need to own approximately $131,375 worth of Smith & Wesson, or 12,500 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 / 0.48 = 2,500 shares, or $26,275 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 will 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.

SWBI Price Action: Shares of Smith & Wesson fell 3% to close at $10.51 on Thursday.

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