Analysts expect the company to report earnings of 32 cents per share. That’s down from 35 cents per share in the year-ago period. The consensus estimate for Hormel Foods quarterly revenue is $3.06 billion (it reported $2.99 billion last year), according to Benzinga Pro.
On Tuesday, Hormel Foods announced the appointment of Donald Monk as chief technology officer, effective March 23.
With the recent buzz around Hormel Foods, some investors may be eyeing potential gains from the company’s dividends too. As of now, Hormel has an annual dividend yield of 4.53%, which is a quarterly dividend amount of 29.25 cents per share ($1.17 a year).
To figure out how to earn $500 monthly from Hormel Foods, we start with the yearly target of $6,000 ($500 x 12 months).
Next, we take this amount and divide it by Hormel’s $1.17 dividend: $6,000 / $1.17 = 5,128 shares.
So, an investor would need to own approximately $132,302 worth of Hormel Foods, or 5,128 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 / $1.17 = 1,026 shares, or $26,471 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.
HRL Price Action: Shares of Hormel Foods gained by 2.5% to close at $25.80 on Tuesday.
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