How To Earn $500 A Month From Lennar Stock Ahead Of Q3 Earnings

by Avi Kapoor Benzinga Staff Writer

Zinger Key Points

A more conservative goal of $100 monthly dividend income would require owning 600 shares of Lennar.
An investor would need to own $398,910 worth of Lennar to generate a monthly dividend income of $500.
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Lennar Corporation LEN will release earnings results for the third quarter, after the closing bell on Thursday, Sept. 18.

Analysts expect the company to report quarterly earnings at $2.09 per share, down from $3.90 per share in the year-ago period. Lennar is projected to report quarterly revenue at $9.05 billion, compared to $9.42 billion a year earlier, according to data from Benzinga Pro.

The company has beaten analyst estimates for revenue in five straight quarters and in nine of the last 10 quarters. The company missed analyst estimates for earnings per share in the second quarter, marking the first miss in earnings per share over the previous 10 quarters.

With the recent buzz around Lennar, some investors may be eyeing potential gains from the company's dividends too. As of now, Lennar offers an annual dividend yield of 1.49%, which is a quarterly dividend amount of 50 cents per share ($2.00 a year).

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

Next, we take this amount and divide it by Lennar's $2.00 dividend: $6,000 / $2.00 = 3,000 shares.

So, an investor would need to own approximately $398,910 worth of Lennar, or 3,000 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 / $2.00 = 600 shares, or $79,782 to generate a monthly dividend income of $100.

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 would 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.

LEN Price Action: Shares of Lennar fell by 0.6% to close at $132.97 on Wednesday.

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