How To Earn $500 Per Month From MKC (NYSE: MKC) Stock

The share price of McCormick & Co. Inc. MKC recently hit $65, and the company announced another increase in quarterly dividends. 

McCormick announced a $0.03 increase from $0.39 to $0.42 per share on its common stock to be paid on Jan. 8 to shareholders in the fourth quarter. Investors can take advantage of this opportunity and get more value for their stocks. 

McCormick shares have shown consistent growth over the years. According to President and CEO Brendan M. Foley, the company remains committed to returning cash to shareholders.

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So, how do you make $500 a month investing in McCormick stock?  

To make $500 per month and at least $6,000 per year from the McCormick stock, you must buy 3,829 shares or invest at least $248,962.

But if you are aiming for a more affordable dividend, say $100 per month or $1,200 annually, you must invest $49,792 for 765 shares. 

To calculate your dividend to devise your investment plan, divide your desired annual profit ($6,000 or $1,200) by the dividend yield (0.0241 for McCormick). 

For instance: 

$6,000/0.0241 = $248,962 annual investment (approximately $20,746 monthly investment)

$1,200/0.0241 = $49,792 annual investment ($4,149 monthly investment) 

Because the dividend payment and stock price fluctuate throughout the year, the dividend yield can change on a rolling basis. 

If you invest at different times of the year, you can calculate the dividend yield by dividing the annual dividend payment by the stock’s existing price. 

For instance: 

If McCormick stock, now at $65, pays an annual dividend of $1.57 per share, the dividend yield would be 2.41% ($1.57/$65). If the stock price increases to $70, the dividend yield drops to 2.24% ($1.57/$70). If the price drops to $50, the dividend yield rises to 3.1% ($1.57/$50). 

For investors who are only willing to take advantage of the $0.03 increase for the fourth quarter of 2023, the quarterly dividend payment is $0.42 per share. 

Companies can increase their annual dividend payments over time if profits skyrocket. This increase would affect the dividend yield even if the stock price remains the same. Likewise, if a company decreases its dividend payment, the dividend yield would drop. 

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