How To Earn $500 A Month From Vail Resorts Stock After Q1 Earnings Report

Vail Resorts, Inc. MTN reported downbeat earnings for its first quarter on Thursday.

Vail Resorts posted a quarterly loss of $4.60 per share, versus market estimates of $4.52 per share. The company’s quarterly sales came in at $258.56 million versus expectations of $271.01 million, according to Benzinga Pro.

With the recent buzz around Vail Resorts following its earnings report, some investors may be eyeing potential gains from the company’s dividends. As of now, Vail Resorts offers an annual dividend yield of 3.65%, which is a quarterly dividend amount of $2.06 per share ($8.24 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 $164,433 or around 728 shares. For a more modest $100 per month or $1,200 per year, you would need $32,977 or around 146 shares.

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To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($8.24 in this case). So, $6,000 / $8.24 = 728 ($500 per month), and $1,200 / $8.24 = 146 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.

MTN Price Action: Shares of Vail Resorts rose 4.1% to close at $225.87 on Friday.

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