How To Earn $500 A Month From Dole Stock Ahead Of Q1 Earnings Report

Zinger Key Points
  • A more conservative goal of $100 monthly dividend income would require owning 3,750 shares of Dole Block.
  • An investor would need to own $229,125 worth of Dole to generate a monthly dividend income of $500.

Dole plc DOLE is expected to release earnings results for its third quarter, before the opening bell on May 15.

Analysts expect the Dublin, Ireland-based company to report quarterly earnings at 31 cents per share, down from 34 cents per share in the year-ago period. Dole is projected to post revenue of $2.12 billion, compared to $1.99 billion a year earlier, according to data from Benzinga Pro.

On Feb. 29, Dole posted weaker-than-expected earnings for its fourth quarter.

With the recent buzz around Dole, some investors may be eyeing potential gains from the company's dividends too. As of now, Dole offers an annual dividend yield of 2.62%, which is a quarterly dividend amount of 8 cents per share (32 cents 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 $229,125 or around 18,750 shares. For a more modest $100 per month or $1,200 per year, you would need $45,825 or around 3,750 shares.

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To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($0.32 in this case). So, $6,000 / $0.32 = 18,750 ($500 per month), and $1,200 / $0.32 = 3,750 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.

DOLE Price Action: Shares of Dole fell 0.7% to close at $12.22 on Monday.

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