How To Earn $500 A Month From RPM International Stock Ahead Of Q2 Earnings

by Avi Kapoor Benzinga Staff Writer

Zinger Key Points

A more conservative goal of $100 monthly dividend income would require 588 shares of RPM International.
An investor would need to own $368,860 worth of RPM International to generate a monthly dividend income of $500.
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Analysts expect RPM International Inc. RPM to report second-quarter earnings at $1.34 per share before the opening bell, on Tuesday, Jan. 7, 2025. That’s up from $1.22 per share in the year-ago period.

The Medina, Ohio-based company projects quarterly revenue of $1.79 billion, compared to $1.79 billion a year earlier, according to data from Benzinga Pro. On Oct. 2, RPM International reported first-quarter results. Sales declined 2.1% Y/Y to $1.97 billion, missing the consensus of $2.015 billion.

With the recent buzz around RPM International, some investors may be eyeing potential gains from its dividends. The company currently offers an annual dividend yield of 1.63%. That’s a quarterly dividend of 51 cents per share ($2.04 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 $368,860 or around 2,941 shares. For a more modest $100 per month or $1,200 per year, you would need $73,747 or around 588 shares.

To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($2.04 in this case). So, $6,000 / $2.04 = 2,941 ($500 per month), and $1,200 / $2.04 = 588 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.

RPM Price Action: Shares of RPM fell 0.6% to close at $125.42 on Thursday.