How To Earn $500 A Month From Jabil Stock Ahead Of Q3 Earnings
Jabil Inc. (NYSE:JBL) will release earnings results for the third quarter, before the opening bell on Tuesday, June 17.
Analysts expect the Saint Petersburg, Florida-based company to report quarterly earnings at $2.30 per share, up from $1.89 per share in the year-ago period. According to data from Benzinga Pro, Jabil projects quarterly revenue of $7.03 billion, compared to $6.76 billion a year earlier.
On May 21, Jabil disclosed that it has signed a memorandum of understanding with AVL Software and Functions GmbH, the e-drive and software center of AVL List GmbH.
Some investors may be eyeing potential gains from the Jabil's dividends. Currently, the company offers an annual dividend yield of 0.18%, which is a quarterly dividend amount of 8 cents per share (32 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 approximately $3,297,000 or around 18,750 shares. For a more modest $100 per month or $1,200 per year, you would need $659,400 or around 3,750 shares.
To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($0.32 in this case). So, $6,000 / $0.32 = 18,750 ($500 per month), and $1,200 / $0.32 = 3,750 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.
JBL Price Action: Shares of Jabil fell 1.8% to close at $175.84 on Friday.
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