Lindsay Corporation (NYSE:LNN) will release earnings for its second quarter before the opening bell on Thursday, April 2.
Analysts expect the company to report earnings of $1.68 per share. That’s down from $2.44 per share in the year-ago period. The consensus estimate for Lindsay’s quarterly revenue is $171.39 million (it reported $187.06 million last year), according to Benzinga Pro.
Lindsay, on Jan. 8, posted mixed results for the first quarter.
With the recent buzz around Lindsay, some investors may be eyeing potential gains from the company’s dividends too. As of now, Lindsay has an annual dividend yield of 1.24%, which is a quarterly dividend amount of 37 cents per share ($1.48 a year).
To figure out how to earn $500 monthly from Lindsay, we start with the yearly target of $6,000 ($500 x 12 months).
Next, we divide this amount by Lindsay’s $1.48 dividend: $6,000 / $1.48 = 4,054 shares.
So, an investor would need to own approximately $482,710 worth of Lindsay, or 4,054 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 / $1.48 = 811 shares, or $96,566 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.
LNN Price Action: Shares of Lindsay gained by 1.2% to close at $119.07 on Tuesday.
Photo via Shutterstock
Recent Comments