How To Earn $500 A Month From FedEx Stock Ahead Of Q4 Earnings

FedEx Corporation FDX will release earnings results for the fourth quarter, after the closing bell on Tuesday, June 23.

Analysts expect the Memphis, Tennessee-based company to report quarterly earnings at $5.85 per share, up from $5.41 per share in the year-ago period.

According to data from Benzinga Pro, FedEx projects to report quarterly revenue of $21.81 billion, compared to $22.1 billion a year earlier.

On June 9, FedEx board increased its quarterly dividend from $1.38 to $1.45 per share.

With the recent buzz around FedEx, some investors may be eyeing potential gains from the company's dividends. Currently, FedEx offers an annual dividend yield of 2.53%, which is a quarterly dividend amount of $1.45 per share ($5.80 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 $237,024 or around 1,034 shares. For a more modest $100 per month or $1,200 per year, you would need $47,451 or around 207 shares.

To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($5.80 in this case). So, $6,000 / $5.80 = 1,034 ($500 per month), and $1,200 / $5.80 = 207 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.

FDX Price Action: Shares of FedEx rose 2.1% to close at $229.23 on Monday.

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