How To Earn $500 A Month From Krispy Kreme Stock After Q3 Earnings Report

Krispy Kreme Inc DNUT on Thursday reported downbeat results for its third quarter.

Krispy Kreme reported third-quarter FY23 sales growth of 7.9% year-on-year to $407.37 million, missing the analyst consensus estimate of $413.93 million. Adjusted EPS of three cents missed the consensus of six cents.

The company continues to see FY23 adjusted EPS of 31 to 34 cents, versus the Street view of 32 cents.

With the buzz around Krispy Kreme following quarterly earnings, some investors may be eyeing potential gains from the company’s dividends. As of now, Krispy Kreme offers an annual dividend yield of 1.11%, which is a quarterly dividend amount of 3.5 cents per share (14 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 $538,284 or around 42,857 shares. For a more modest $100 per month or $1,200 per year, you would need $107,652 or around 8,571 shares.

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

DNUT Price Action: Shares of Krispy Kreme fell 6.6% to close at $12.56 on Thursday.

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