Analysts expect the Tulsa, Oklahoma-based company to report quarterly earnings at 81 cents per share, up from 69 cents per share in the year-ago period. Helmerich & Payne projects to report revenue of $695.24 million for the recent quarter, compared to $659.61 million a year earlier, according to data from Benzinga Pro.
On Oct. 16, Barclays analyst David Anderson maintained Helmerich & Payne with an Equal-Weight and lowered the price target from $42 to $39.
With the recent buzz around Helmerich & Payne, some investors may be eyeing potential gains from the company's dividends, too. Currently, Helmerich & Payne offers an annual dividend yield of 2.77%. That’s a quarterly dividend amount of 25 cents per share ($1.00 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 $216,540 or around 6,000 shares. For a more modest $100 per month or $1,200 per year, you would need $43,308 or around 1,200 shares.
To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($1.00 in this case). So, $6,000 / $1.00 = 6,000 ($500 per month), and $1,200 / $1.00 = 1,200 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.
HP Price Action: Shares of Helmerich & Payne fell 2% to close at $36.09 on Tuesday.
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Image: Helmerich & Payne
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