How To Earn $500 A Month From Mueller Water Products Stock Following Earnings Beat
Mueller Water Products, Inc. (NYSE: MWA) posted better-than-expected results for its fourth quarter on Wednesday.
The Atlanta-based company posted adjusted earnings of 19 cents per share, beating market estimates of 10 cents per share. The company’s quarterly sales came in at $301.40 million versus expectations of $272.74 million.
Mueller also said it sees first-quarter consolidated net sales of $245 million to $255 million.
With the recent buzz around Mueller Water Products following upbeat earnings, some investors may be eyeing potential gains from the company’s dividends. As of now, the company has a dividend yield of 1.82%, which is a quarterly dividend amount of 6.1 cents a share (25.6 cents a year).
To figure out how to earn $500 monthly from Mueller Water Products dividends, we start with the yearly target of $6,000 ($500 x 12 months).
Next, we take this amount and divide it by Mueller Water Products dividend: $6,000 / $0.256 = 23,438 shares
So, an investor would need to own approximately $329,538 worth of Mueller Water Products, or 23,438 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 / $0.256 = 4,688 shares, or $65,913 to generate a monthly dividend income of $100.
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Note that dividend yields 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
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).
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.
MWA Price Action: Shares of Mueller Water Products gained 2.3% to close at $14.06 on Wednesday.
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This article How To Earn $500 A Month From Mueller Water Products Stock Following Earnings Beat originally appeared on Benzinga.com
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