How To Earn $500 A Month From Greenbrier Stock Ahead Of Q3 Earnings

The Greenbrier Companies, Inc. GBX will release its financial results for the third quarter ended May 31, before the opening bell on Monday, July 8.

Analysts expect the Lake Oswego, Oregon-based company to report quarterly earnings at $1.14 per share, up from $1.02 per share in the year-ago period. Greenbrier is expected to post revenue of $928.73 million, according to data from Benzinga Pro.

On May 21, Greenbrier named Michael Donfris as CFO.

With the recent buzz around Greenbrier, some investors may be eyeing potential gains from the company's dividends. As of now, Greenbrier has a dividend yield of 2.44%, which is a quarterly dividend amount of 30 cents a share ($1.20 a year).

To figure out how to earn $500 monthly from Greenbrier, we start with the yearly target of $6,000 ($500 x 12 months).

Next, we take this amount and divide it by Greenbrier's $1.20 dividend: $6,000 / $1.20  = 5,000 shares

So, an investor would need to own approximately $245,500 worth of Greenbrier, or 1,087 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 / $1.20 = 1,000 shares, or $49,100 to generate a monthly dividend income of $100.

Also Read: Wall Street’s Most Accurate Analysts Give Their Take On 3 Health Care Stocks With Over 3% Dividend Yields

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.

GBX Price Action: Shares of Greenbrier fell 0.9% to close at $49.10 on Monday.

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