Analysts expect the company to report quarterly earnings of $1.34 per share. That’s down from $1.39 per share in the year-ago period. The consensus estimate for Medtronic’s quarterly revenue is $8.9 billion (it reported $8.29 billion last year), according to Benzinga Pro. Needham analyst Mike Matson upgraded Medtronic from Hold to Buy on Monday and set a $121 price target.
Medtronic investors may be eyeing potential gains from the company’s dividends. Currently, the company has an annual dividend yield of 2.82%, which is a quarterly dividend amount of 71 cents per share ($2.84 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 $213,159 or around 2,113 shares. For a more modest $100 per month or $1,200 per year, you would need $42,672 or around 423 shares.
To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($2.84 in this case). So, $6,000 / $2.84 = 2,113 ($500 per month), and $1,200 / $2.84 = 423 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.
MDT Price Action: Shares of Medtronic fell by 0.2% to close at $100.88 on Thursday.
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