How To Earn $500 A Month From General Mills Stock Ahead Of Q3 Earnings

General Mills, Inc. GIS is set to release earnings results for its third quarter, before the opening bell on March 20, 2024.

Analysts expect the Minneapolis, Minnesota-based company to report quarterly earnings at $1.05 per share, up from 97 cents per share in the year-ago period. General Mills is projected to post quarterly revenue of $4.96 billion, according to data from Benzinga Pro.

On Feb. 7, General Mills announced the retirement of Shawn O'Grady, Group President, North America Foodservice.

With the recent buzz around General Mills, some investors may be eyeing potential gains from the company’s dividends. As of now, General Mills has a dividend yield of 3.48%, which is a quarterly dividend amount of 59 cents a share ($2.36 a year).

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

Next, we take this amount and divide it by General Mills’ $2.36 dividend: $6,000 / $2.36 = 2,542 shares

So, an investor would need to own approximately $172,195 worth of General Mills, or 2,542 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 / $2.36 = 508 shares, or $34,412 to generate a monthly dividend income of $100.

Also Read: Top 4 Tech Stocks That May Collapse In March

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.

GIS Price Action: Shares of General Mills gained 1.5% to close at $67.74 on Monday.

Read More: Traeger And 3 Other Stocks Under $5 Insiders Are Buying

Photo: Casimiro PT/Shutterstock.com