Analysts expect the retailer to report earnings of $4.54 per share. That’s up from $4.02 per share in the year-ago period. The consensus estimate for COST’s quarterly revenue is $69.28 billion (it reported $63.72 billion last year), according to Benzinga Pro. Costco beat analyst revenue estimates in five straight quarters and in eight of the past 10 quarters overall.
Some investors may be eyeing potential gains from the company’s dividends. Currently, Costco has an annual dividend yield of 0.52%, which is a quarterly dividend amount of $1.30 per share ($5.20 a year).
To figure out how to earn $500 monthly from Costco, we start with the yearly target of $6,000 ($500 x 12 months).
Next, we take this amount and divide it by Costco’s $5.20 dividend: $6,000 / $5.20 = 1,154 shares.
So, an investor would need to own approximately $1,161,778 worth of Costco, or 1,154 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 / $5.20 = 231 shares, or $232,557 to generate a monthly dividend income of $100.
Note that dividend yield can change on a rolling basis; dividend payments 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.
COST Price Action: Shares of Costco fell by 0.1% to close at $1,006.74 on Wednesday.
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