How To Earn $500 A Month From Brown & Brown Stock Ahead Of Q2 Earnings

Brown & Brown, Inc. BRO will release its second-quarter financial results, after the closing bell on Monday, July 22.

Analysts expect the Daytona Beach, Florida-based company to report quarterly earnings at 88 cents per share, up from 68 cents per share in the year-ago period. Brown & Brown is seen posting revenue of $1.14 billion, compared to $997.51 million a year earlier, according to data from Benzinga Pro.

On July 17, Brown & Brown declared a regular quarterly cash dividend of 13 cents per share.

With the recent buzz around Brown & Brown, some investors may be eyeing potential gains from the company's dividends too. As of now, Brown & Brown offers an annual dividend yield of 0.56%, which is a quarterly dividend amount of 13 cents per share (52 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 $1,066,803 or around 11,538 shares. For a more modest $100 per month or $1,200 per year, you would need $213,398 or around 2,308 shares.

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To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($0.52 in this case). So, $6,000 / $0.52 = 11,538 ($500 per month), and $1,200 / $0.52 = 2,308 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.

BRO Price Action: Shares of Brown & Brown fell 0.8% to close at $92.46 on Friday.

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Image created using artificial intelligence via Midjourney.