Commercial Metals Company (NYSE:CMC) will release earnings results for the first quarter, before the opening bell on Thursday, Jan. 8, 2025.
Analysts expect the company to report quarterly earnings at $1.54 per share, up from 78 cents per share in the year-ago period. The consensus estimate for Commercial Metals’ quarterly revenue is $2.05 billion, up from $1.91 billion a year earlier, according to data from Benzinga Pro.
On Dec. 10, Jefferies analyst Christopher LeFemina upgraded Commercial Metals from Hold to Buy and raised the price target from $70 to $78.
With the recent buzz around Commercial Metals, some investors may be eyeing potential gains from the company’s dividends too. As of now, Commercial Metals has an annual dividend yield of 0.97%, which is a quarterly dividend amount of 18 cents per share (72 cents a year).
To figure out how to earn $500 monthly from Commercial Metals, we start with the yearly target of $6,000 ($500 x 12 months).
Next, we take this amount and divide it by CMC’s $0.72 dividend: $6,000 / $0.72 = 8,333 shares.
So, an investor would need to own approximately $621,725 worth of Commercial Metals Companies, or 8,333 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 / $0.72 = 1,667 shares, or $124,375 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.
CMC Price Action: Shares of Commercial Metals gained by 2.6% to close at $74.61 on Tuesday.
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