How To Earn $500 A Month From Lennar Stock Following Upbeat Earnings

Lennar Corporation LEN reported better-than-expected results for its fourth quarter on Thursday.

Lennar posted adjusted earnings of $5.17 per share, beating market estimates of $4.59 per share. The company’s quarterly sales came in at $10.97 billion versus expectations of $10.22 billion, according to Benzinga Pro.

Lennar said it sees first-quarter net orders of 17,500-18,000.

With the recent buzz around Lennar following upbeat earnings report, some investors may be eyeing potential gains from the company’s dividends too. As of now, Lennar offers an annual dividend yield of 0.97%, which is a quarterly dividend amount of 37.5 cents per share ($1.50 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 $619,240 or around 4,000 shares. For a more modest $100 per month or $1,200 per year, you would need $123,848 or around 800 shares.

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To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($1.50 in this case). So, $6,000 / $1.50 = 4,000 ($500 per month), and $1,200 / $1.50 = 800 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.

LEN Price Action: Shares of Lennar gained 6.7% to close at $154.81 on Thursday.

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