Analysts expect the company to report quarterly earnings of $2.81 per share. That’s down from $3.43 per share in the year-ago period. The consensus estimate for Becton Dickinson’s quarterly revenue is $5.15 billion (it reported $5.17 billion last year), according to Benzinga Pro.
According to recent news, Becton Dickinson announced on Jan. 27 a buyback plan of up to 10 million shares. Some investors are now eyeing potential gains from the company’s dividends. As of now, the firm has an annual dividend yield of 2.03%, with a quarterly dividend of $1.05 per share ($4.20 per 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 $295,103 or around 1,429 shares. For a more modest $100 per month or $1,200 per year, you would need $59,062 or around 286 shares.
To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($4.20 in this case). So, $6,000 / $4.20 = 1,429 ($500 per month), and $1,200 / $4.20 = 286 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: Compute the dividend yield 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.
BDX Price Action: Shares of Becton, Dickinson fell by 0.7% to close at $206.51 on Thursday.
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