How To Earn $500 A Month From Jabil 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 3,750 shares of Jabil.
An investor would need to own $2,542,875 worth of Jabil to generate a monthly dividend income of $500.
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Jabil Inc. JBL will release its second-quarter financial results, before the opening bell, on Thursday, March 20.

Analysts expect the company to report quarterly earnings at $1.83 per share, up from $1.68 per share in the year-ago period. Jabil projects quarterly revenue of $6.4 billion, compared to $6.77 billion a year earlier, according to data from Benzinga Pro.

On Feb. 24, Goldman Sachs analyst Mark Delaney maintained Jabil with a Buy and raised the price target from $160 to $179.

With the recent buzz around Jabil, some investors may be eyeing potential gains from the company's dividends too. Currently, Jabil offers an annual dividend yield of 0.24%, 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 $2,542,875 or around 18,750 shares. For a more modest $100 per month or $1,200 per year, you would need $508,575 or around 3,750 shares.

To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend (32 cents 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.

Price Action: Shares of Jabil fell 2% to close at $135.62 on Tuesday.