How To Earn $500 A Month From FedEx Stock Ahead Of Q4 Earnings

FedEx Corporation FDX will release its fourth quarter financial results, after the closing bell on Tuesday.

Analysts expect the Memphis, Tennessee-based company to report quarterly earnings at $5.36 per share, up from $4.94 per share in the year-ago period. FedEx is expected to post revenue of $22.08 billion, compared to $21.93 billion a year earlier, according to data from Benzinga Pro.

On June 12, FedEx unveiled a plan to streamline its operations across Europe, aiming to reduce structural costs significantly. The restructuring initiative aims to reduce 1,700 to 2,000 positions, primarily within the company's back-office and commercial teams.

With the recent buzz around FedEx, some investors may be eyeing potential gains from the company's dividends. As of now, FedEx has a dividend yield of 2.18%, which is a quarterly dividend amount of $1.38 a share ($5.52 a year).

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

Next, we take this amount and divide it by FedEx's $5.52 dividend: $6,000 / $5.52  = 1,087 shares

So, an investor would need to own approximately $275,728 worth of FedEx, or 1,087 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 / $5.52 = 217 shares, or $55,044 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.

FDX Price Action: Shares of FedEx gained 0.5% to close at $253.66 on Friday.

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