How To Earn $500 A Month From Cracker Barrel Stock After Earnings Beat

Cracker Barrel Old Country Store Inc CBRL posted better-than-expected earnings for its fourth quarter.

Cracker Barrel reported fourth-quarter FY23 revenue growth of 0.8% year-on-year to $836.7 million, missing the analyst consensus of $842.61 million. Adjusted EPS of $1.79 beat the consensus estimate of $1.61.

Cracker Barrel expects first-quarter sales of $800 million - $850 million, versus the consensus of $848.54 million.

With Cracker Barrel announcing upbeat earnings, some investors may be eyeing potential gains from the company’s dividends. As of now, Cracker Barrel has a dividend yield of 7.01%, which is a quarterly dividend amount of $1.30 a share ($5.20 a year).

To figure out how to earn $500 monthly from Cracker Barrel dividends, we start with a yearly target of $6,000 ($500 x 12 months).

Next, we take this amount and divide it by Cracker Barrel’s $5.20 dividend: $6,000 / $5.20 = 1,154 shares

So, an investor would need to own approximately $83,007 worth of Cracker Barrel, or 1,154 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 / 5.20 = 231 shares, or $16,615 to generate a monthly dividend income of $100.

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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.

CBRL Price Action: Shares of Cracker Barrel fell 3% to close at $71.93 on Wednesday.

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