Analysts expect the company to report quarterly earnings of 57 cents per share. That’s down from 74 cents per share in the year-ago period. The consensus estimate for Campbell’s quarterly revenue is $2.61 billion (it reported $2.69 billion last year), according to Benzinga Pro.
Ahead of quarterly earnings, UBS analyst Peter Grom, on Friday, maintained Campbell’s with a Sell and lowered the price target from $26 to $24. Morgan Stanley analyst Megan Alexander maintained the stock with an Equal-Weight rating and cut the price target from $28 to $27.
With the recent buzz around Campbell’s, some investors may be eyeing potential gains from the company’s dividends too. As of now, Campbell’s has an annual dividend yield of 6.17%, which is a quarterly dividend amount of 39 cents per share ($1.56 a year).
So, how can investors exploit its dividend yield to pocket a regular $500 monthly?
To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $97,265 or around 3,846 shares. For a more modest $100 per month or $1,200 per year, you would need $19,448 or around 769 shares.
To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($1.56 in this case). So, $6,000 / $1.56 = 3,846 ($500 per month), and $1,200 / $1.56 = 769 shares ($100 per month).
Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.
How that works: The dividend yield is computed by dividing the annual dividend payment by the stock’s current price.
For example, if a stock pays an annual dividend of $2 and is currently priced at $50, the dividend yield would be 4% ($2/$50). However, if the stock price increases to $60, the dividend yield drops to 3.33% ($2/$60). Conversely, if the stock price falls to $40, the dividend yield rises to 5% ($2/$40).
Similarly, changes in the dividend payment can impact the yield. If a company increases its dividend, the yield will also increase, provided the stock price stays the same. Conversely, if the dividend payment decreases, so will the yield.
CPB Price Action: Shares of Campbell’s fell 2% to close at $25.29 on Monday.
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