MillerKnoll, Inc. (NASDAQ:MLKN) will release its first earnings report before the opening bell on Tuesday, Sept. 22.
On June 24, the company reported better-than-expected fourth-quarter financial results.
Some investors may be eyeing potential gains from its dividends. As of now, MillerKnoll has an annual dividend yield of 3.53%, with a quarterly dividend of 18.75 cents per share (75 cents 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 about $170,080 or around 8,000 shares. For a more modest $100 per month or $1,200 per year, you would need $34,016 or around 1,600 shares.
To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($0.75 in this case). So, $6,000 / $0.75 = 8,000 ($500 per month), and $1,200 / $0.75 = 1,600 shares ($100 per month).
Note that dividend yield can change on a rolling basis, as dividend payments and stock prices 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 trades at $50, the dividend yield is 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 dividend payments can affect 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, the yield will too.
MLKN Price Action: MillerKnoll shares gained 0.3% to close at $21.26 on Monday.
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