How to Make $500 a Month in McCormick Stock Ahead of Q3 Earnings

McCormick & Company, Incorporated (NYSE:MKC) will release its third quarter earnings results before the opening bell on Tuesday, October 1st.

Analysts expect the Hunt Valley, Maryland-based company to report quarterly earnings of 67 cents per share, up from 65 cents per share in the year-ago period. McCormick is expected to have quarterly revenue of $1.67 billion, according to Benzinga Pro.

With the recent buzz surrounding McCormick, some investors may be eyeing potential gains from the company’s dividend. McCormick currently has a dividend yield of 2.02%. That’s a quarterly dividend of 42 cents per share ($1.68 per year).

To earn $500 monthly from McCormick, start with an annual goal of $6,000 ($500 x 12 months).

We then take this amount and divide it by McCormick’s $1.68 dividend: $6,000 / $1.68 = 3,571 shares

So an investor would need to own about $297,250 or 3,571 shares of McCormick 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 / $1.68 = 714 shares or $59,433 to generate a monthly dividend income of $100.

Keep in mind that the dividend yield can change constantly because the dividend payout and stock price fluctuate over time.

See more earnings on MKC

Dividend yield is calculated by dividing the annual dividend payment by the current share price. As the share price changes, so will the dividend yield.

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 rises to $60, the dividend yield would drop to 3.33% ($2/$60).

Conversely, if the stock price falls to $40, the dividend yield would increase to 5% ($2/$40).

In addition, the dividend payout itself can change over time, which can also affect the dividend yield. If a company increases its dividend payout, the dividend yield will increase even if the stock price stays the same. Similarly, if a company lowers its dividend payout, the dividend yield will fall.

Price action: McCormick shares traded down 0.01% by Friday at $83.24.

On September 17, Bank of America Securities analyst Peter Galbo maintained McCormick with a Buy rating and raised his price target from $86 to $95.

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This article How to Make $500 a Month in McCormick Stock Ahead of Q3 Earnings originally appeared on Benzinga.com

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