How To Earn $500 A Month From Acuity Brands Stock Ahead Of First-Quarter Earnings Report
Acuity Brands, Inc. (NYSE: AYI) is expected to release earnings results for its fiscal 2024 first-quarter, before the opening bell on Jan. 9, 2023.
Analysts expect the company to report quarterly earnings at $3.22 per share on revenue of $937.70 million. Wells Fargo analyst Joseph O'Dea, last month, maintained Acuity Brands with an Overweight and raised the price target from $200 to $236.
Acuity Brands, during October 2023, reported better-than-expected earnings for its fourth quaretr.
With the recent buzz around Acuity Brands, some investors may be eyeing potential gains from the company’s dividends. As of now, Acuity Brands has a dividend yield of 0.25%, which is a quarterly dividend amount of 13 cents a share (52 cents a year).
To figure out how to earn $500 monthly from Acuity Brands dividends, we start with the yearly target of $6,000 ($500 x 12 months).
Next, we take this amount and divide it by Acuity Brands’ $0.52 dividend: $6,000 / $0.52 = 11,538 shares
So, an investor would need to own approximately $2,369,674 worth of Acuity Brands, or 11,538 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 / $0.52 = 2,308 shares, or $474,017 to generate a monthly dividend income of $100.
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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.
AYI Price Action: Shares of Acuity Brands rose 0.9% to close at $205.38 on Friday.
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