How To Earn $500 A Month From Constellation Brands Stock Ahead Of Q3 Earnings Report

Constellation Brands, Inc. STZ is expected to release earnings results for its third quarter ended Nov. 30, 2023, before the opening bell on Jan. 5, 2024.

Analysts expect the company to report quarterly earnings of $3.00 per share on revenue of $2.55 billion, according to Benzinga Pro. JPMorgan analyst Andrea Teixeira recently maintained Constellation Brands with an Overweight rating and lowered the price target from $309 to $301.

With the recent buzz around Constellation Brands, some investors may be eyeing potential gains from the company’s dividends. As of now, Constellation Brands has a dividend yield of 1.47%, which is a quarterly dividend amount of 89 cents a share ($3.56 a year).

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

Next, we take this amount and divide it by Constellation Brands’ $3.56 dividend: $6,000 / $3.56 = 1,685 shares

So, an investor would need to own approximately $406,793 worth of Constellation Brands, or 1,685 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 / $3.56 = 337 shares, or $81,359 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.

STZ Price Action: Shares of Constellation Brands fell 1% to close at $241.42 on Wednesday.

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