Avi Kapoor
2 min read
In This Article:
Dollar General Corporation (NYSE:DG) will release its first-quarter financial results before the opening bell on Tuesday, June 3.
Analysts expect the company to report quarterly earnings at $1.49 per share, down from $1.65 per share in the year-ago period. Dollar General projects quarterly revenue of $10.29 billion, compared to $9.91 billion a year earlier, according to data from Benzinga Pro.
On May 29, UBS analyst Michael Lasser maintained Dollar General with a Buy rating and raised the price target from $95 to $120.
With the recent buzz around Dollar General, some investors may be eyeing potential gains from the company's dividends too. As of now, Dollar General offers an annual dividend yield of 2.43%, which is a quarterly dividend amount of 59 cents per share ($2.36 a year).
To figure out how to earn $500 monthly from Dollar General, we start with the yearly target of $6,000 ($500 x 12 months).
Next, we take this amount and divide it by Dollar General's $2.36 dividend: $6,000 / 2.36 = 2,542 shares.
So, an investor would need to own approximately $247,210 worth of Dollar General, or 2,542 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 / $1.158 = 508 shares, or $49,403 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.
DG Price Action: Shares of Dollar General gained by 0.2% to close at $97.25 on Friday.
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