How To Earn $500 A Month From Consolidated Water Stock Ahead Of Q2 Earnings

Consolidated Water Co. Ltd. CWCO recently announced a quarterly cash dividend of 9.5 cents per share for the third quarter of 2024.

The company is expected to release earnings results for its second quarter, after the closing bell on Wednesday, Aug. 14.

Analysts expect the Cayman Islands-based company to report quarterly earnings of 34 cents per share, down from 46 cents per share in the year-ago period. Consolidated Water is projected to post revenue of $37.3 million, compared to $44.24 million a year earlier, according to data from Benzinga Pro.

With the recent buzz around Consolidated Water, some investors may be eyeing potential gains from the company's dividends. As of now, Consolidated Water has a dividend yield of 1.45%, which is a quarterly dividend amount of 9.5 cents a share (38 cents a year).

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

Next, we take this amount and divide it by Consolidated Water's $0.38 dividend: $6,000 / $0.38  = 15,789 shares

So, an investor would need to own approximately $415,093 worth of Consolidated Water, or 15,789 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 / $0.38 = 3,158 shares, or $83,024 to generate a monthly dividend income of $100.

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.

CWCO Price Action: Shares of Consolidated Water fell 1.2% to close at $26.29 on Monday.

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Image created using artificial intelligence via Midjourney.