Hexcel Corporation HXL on Monday reported weaker-than-expected third-quarter financial results.
Hexcel posted quarterly earnings of 38 cents per share, missing market estimates of 43 cents per share. The company’s quarterly sales came in at $419.50 million versus expectations of $427.28 million.
Hexcel reaffirmed FY23 earnings of $1.80 to $1.94 per share. The company sees FY23 revenue of $1.765 billion to $1.835 billion.
With the buzz around Hexcel following upbeat earnings, some investors may be eyeing potential gains from the company’s dividends. As of now, Hexcel offers an annual dividend yield of 0.73%, which is a quarterly dividend amount of $0.1250 per share ($0.475 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 $819,817 or around 12,632 shares. For a more modest $100 per month or $1,200 per year, you would need $163,937 or around 2,526 shares.
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To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend (0.475 in this case). So, $6,000 / 0.475= 12,632 ($500 per month), and $1,200 / 0.475= 2,526 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.
HXL Price Action: Shares of Hexcel gained 0.1% to close at $64.90 on Monday.
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