How To Earn $500 A Month From MSC Industrial Stock Ahead Of Q3 Earnings

MSC Industrial Direct Co., Inc. MSM is set to release earnings results for its third quarter, before the opening bell on Tuesday, July 2.

Analysts expect the New York-based company to report quarterly earnings at $1.34 per share, down from $1.74 per share in the year-ago period. MSC Industrial is projected to post revenue of $982.22 million for the quarter, according to data from Benzinga Pro.

On June 17, Loop Capital analyst Chris Dankert downgraded MSC Industrial Direct from Buy to Hold, while Keybanc analyst Ken Newman downgraded the stock from Overweight to Sector Weight.

With the recent buzz around MSC Industrial, some investors may be eyeing potential gains from the company's dividends too. As of now, MSC Industrial offers an annual dividend yield of 4.26%. That’s a quarterly dividend amount of 83 cents per share ($3.32 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 $140,964 or around 1,807 shares. For a more modest $100 per month or $1,200 per year, you would need $28,162 or around 361 shares.

Read This: Wall Street’s Most Accurate Analysts Spotlight On 3 Financial Stocks Delivering High-Dividend Yields

To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($3.32 in this case). So, $6,000 / $3.32 = 1,807 ($500 per month), and $1,200 / $3.32 = 361 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.

MSM Price Action: Shares of MSC Industrial Direct fell 1.1% to close at $78.01 on Thursday.

Check This Out:

• How to Find Dividend Stocks: Scan, Analyze, and Capture with Benzinga Pro