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

by Avi Kapoor Benzinga Staff Writer

Zinger Key Points

A more conservative goal of $100 monthly dividend income would require owning 1,875 shares of Worthington Enterprises.
An investor would need to own $480,656 worth of Worthington Enterprises to generate a monthly dividend income of $500.
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Worthington Enterprises, Inc. WOR is set to release earnings results for its fourth quarter, after the closing bell on Tuesday.

Analysts expect the Columbus, Ohio-based company to report quarterly earnings at 94 cents per share, down sharply from $2.74 per share in the year-ago period. Worthington Enterprises is projected to post revenue of $359.39 million for the quarter, compared to $1.23 billion in the year-earlier quarter, according to data from Benzinga Pro.

On June 3, Worthington Enterprises reported the closing of its planned acquisition of Hexagon Ragasco.

With the recent buzz around Worthington Enterprises, some investors may be eyeing potential gains from the company's dividends too. As of now, Worthington Enterprises offers an annual dividend yield of 1.25%, which is a quarterly dividend amount of 16 cents per share (64 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 $480,656 or around 9,375 shares. For a more modest $100 per month or $1,200 per year, you would need $96,131 or around 1,875 shares.

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To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($0.64 in this case). So, $6,000 / $0.64 = 9,375 ($500 per month), and $1,200 / $0.64 = 1,875 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.

WOR Price Action: Shares of Worthington Enterprises gained 1.5% to close at $51.27 on Monday.

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