How To Earn $500 A Month From Walmart Stock Following Strong Q3 Sales

Walmart Inc WMT reported upbeat sales results for the third quarter on Thursday.

Walmart reported third-quarter FY24 sales growth of 5.2% year-over-year to $160.8 billion, beating the consensus of $159.55 billion, according to data from Benzinga Pro. Adjusted EPS was $1.53, above $1.50 for the same quarter last year, beating the consensus of $1.52.

For FY24, Walmart now sees adjusted EPS guidance of $6.40-$6.48 (prior $6.36-$6.46) versus an estimate of $6.48. The company raised its FY24 net sales growth (cc) outlook from 4%-4.5%  to 5.0%-5.5%.

With Walmart reporting upbeat quarterly earnings, some investors may be eyeing potential gains from the company’s dividends. As of now, Walmart has a dividend yield of 1.46%, which is a quarterly dividend amount of 57 cents a share ($2.28 a year).

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

Next, we take this amount and divide it by Walmart $2.28 dividend: $6,000 / $2.28 = 2,632 shares

So, an investor would need to own approximately $410,697 worth of Walmart, or 2,632 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 / $2.28 = 526 shares, or $82,077 to generate a monthly dividend income of $100.

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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.

WMT Price Action: Shares of Walmart fell 8.1% to close at $156.04 on Thursday.

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