How To Earn $500 A Month From Tyson Foods Stock Ahead Of Q3 Earnings Report

Tyson Foods, Inc. TSN will release earnings results for its third quarter, before the opening bell on Monday, Aug. 5.

Some investors may be eyeing potential gains from the Springdale, Arkansas-based company's dividends.

Tyson Foods currently offers an annual dividend yield of 3.23%, which is a quarterly dividend amount of 49 cents per share ($1.96 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 $185,986 or around 3,061 shares. For a more modest $100 per month or $1,200 per year, you would need $37,185 or around 612 shares.

To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($1.96 in this case). So, $6,000 / $1.96 = 3,061 ($500 per month), and $1,200 / $1.96 = 612 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.

TSN Price Action: Shares of Tyson Foods fell 0.2% to close at $60.76 on Thursday.

On Aug. 5, analysts expect the company to report quarterly earnings at 65 cents per share, up from 15 cents per share in the year-ago period.

Tyson projects to report quarterly revenue of $13.21 billion for the quarter, according to data from Benzinga Pro.

On July 10, Bank of America Securities analyst Bryan Spillane maintained Tyson with a Neutral and lowered the price target from $62 to $60.

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