How To Earn $500 A Month From Steelcase After Strong Q2 Results

Steelcase Inc. SCS reported better-than-expected results for its second quarter.

Steelcase posted quarterly earnings of 31 cents per share, beating market estimates of 20 cents per share. The company’s quarterly sales came in at $854.60 million versus expectations of $828.82 million.

The company said it sees FY24 earnings of 80 cents to 90 cents per share, versus market estimates of 67 cents per share.

With the buzz around Steelcase following strong quarterly results, some investors may be eyeing potential gains from the company’s dividends. As of now, Steelcase offers an annual dividend yield of 4.58%, which is a quarterly dividend amount of $0.10 a share ($0.40 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 $132,150 or around 15,000 shares. For a more modest $100 per month or $1,200 per year, you would need $26,430 or around 3,000 shares.

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To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend (0.40 in this case). So, $6,000 / 0.40= 15,000 shares ($500 per month), and $1,200 / 0.40= 3,000 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.

SCS Price Action: Shares of Steelcase rose 0.8% to close at $8.81 on Tuesday.

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