How To Earn $500 A Month From Lennar After Q3 Results

Lennar Corporation LEN reported better-than-expected results for its third quarter.

The company posted quarterly earnings of $3.91 per share, which beat the analyst consensus estimate of $3.51. Quarterly sales of $8.73 billion beat the analyst consensus estimate of $8.45 billion, but were down 2.28% from the same period last year.

New orders increased 37% to 19,666 homes, while the new orders dollar value increased 30% to $8.6 billion.

With the buzz around Lennar following quarterly results, some investors may be eyeing potential gains from the company’s dividends. As of now, Lennar offers an annual dividend yield of 1.31%, which is a quarterly dividend amount of $0.375 a share ($1.50 a year).

So, how can investors capitalize on 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 $459,040 or around 4,000 shares. For a more modest $100 per month or $1,200 per year, you would need $91,808 or around 800 shares.

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To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($1.50 in this case). So, $6,000 / 1.50= 4,000 shares ($500 per month), and $1,200 / 1.50= 800 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.

LEN Price Action: Shares of Lennar fell 2.5% to close at $114.76 on Friday.

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