How To Earn $500 A Month From Conagra Brands Stock Ahead Of Q4 Earnings

As Conagra Brands, Inc. CAG gears up to unveil its fourth-quarter earnings on July 10, all eyes are on whether the food giant can maintain its profitability amid shifting market dynamics and a declining revenue forecast—while investors weigh the allure of a tempting dividend yield that could reshape their portfolios.

Analysts expect the company to report quarterly earnings of 61 cents per share, in line with the 61 cents per share reported in the year-ago period. Conagra Brands is projected to report quarterly revenue of $2.88 billion, compared to $2.91 billion a year earlier, according to data from Benzinga Pro.

On July 2, Morgan Stanley analyst Megan Alexander maintained a Conagra Brands rating of Equal Weight and lowered the price target from $27 to $22.

With the recent buzz around Conagra Brands, some investors may also be eyeing potential gains from the company's dividends. As of now, Conagra Brands offers an annual dividend yield of 6.67%, which is a quarterly dividend amount of 35 cents per share ($1.40 a year).  

So, how can investors capitalize on its dividend yield to earn a regular $500 monthly?

To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $89,963 or around 4,286 shares. For a more modest $100 per month or $1,200 per year, you would need $17,988 or around 857 shares.

To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($1.40 in this case). So, $6,000 / $1.40 = 4,286 ($500 per month), and $1,200 / $1.40 = 857 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.

CAG Price Action: Shares of Conagra Brands fell 0.7% to close at $20.99 on Thursday.

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