Analysts expect the company to report earnings of 22 cents per share. That’s up from 20 cents per share in the year-ago period. The consensus estimate for ADT’s quarterly revenue is $1.3 billion (it reported $1.26 billion last year), according to Benzinga Pro.
On Feb. 24, ADT, Origin AI and Verisure  announced a five-year renewable commercial agreement.
With the recent buzz around ADT, some investors may be eyeing potential gains from the company’s dividends too. As of now, ADT has an annual dividend yield of 2.71%, which is a quarterly dividend amount of 5.5 cents per share (22 cents a year).
To figure out how to earn $500 monthly from ADT, we start with the yearly target of $6,000 ($500 x 12 months).
Next, we take this amount and divide it by ADT’s $0.22 dividend: $6,000 / $0.22 = 27,273 shares.
So, an investor would need to own approximately $221,184 worth of ADT, or 27,273 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 / $0.22 = 5,455 shares, or $44,240 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.
ADT Price Action: Shares of ADT gained by 2% to close at $8.11 on Thursday.
Photo: Tada Images / Shutterstock
Recent Comments