How To Earn $500 A Month From Steelcase Stock Ahead Of Q1 Earnings Report

Steelcase Inc. SCS is set to release earnings results for its first quarter, after the closing bell on Wednesday.

Analysts expect the Grand Rapids, Michigan-based company to report quarterly earnings at 10 cents per share, up from 9 cents per share in the year-ago period. The company is projected to post revenue of $729.13 million for the quarter, according to data from Benzinga Pro.

On Friday, Benchmark analyst Reuben Garner upgraded Steelcase from Hold to Buy, while announcing a price target of $17.

With the recent buzz around Steelcase, some investors may be eyeing potential gains from the company's dividends too. As of now, Steelcase offers an annual dividend yield of 3.23%, which is a quarterly dividend amount of 10 cents per share (40 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 $186,000 or around 15,000 shares. For a more modest $100 per month or $1,200 per year, you would need $37,200 or around 3,000 shares.

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To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($0.40 in this case). So, $6,000 / $0.40 = 15,000 ($500 per month), and $1,200 / $0.40 = 3,000 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.

SCS Price Action: Shares of Steelcase gained 0.6% to close at $12.40 on Friday.

Check This Out: How to Find Dividend Stocks: Scan, Analyze, and Capture with Benzinga Pro

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