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

AZZ Inc. AZZ is expected to release earnings results for its fourth quarter, after the closing bell on April 22, 2024.

Analysts expect the Fort Worth, Texas-based company to report quarterly earnings at 70 cents per share.

That’s down from 79 cents per share in the year-earlier period. AZZ is expected to post revenue of $351.67 million, up from $336.5 million a year ago, according to data from Benzinga Pro.

On March 8, AZZ raised the guidance for FY25 thanks to strength in several end markets. The company raised the outlook for sales to $1.525 billion – $1.625 billion (from $1.5 billion- $1.6 billion prior) vs. consensus of $1.568 billion and adjusted EPS to $4.50 – $5.00 (from $4.25 – $4.75 earlier) vs. $4.69 estimate.

With the recent buzz around AZZ, some investors may be eyeing potential gains from the company's dividends. AZZ currently has a dividend yield of 0.91% — a quarterly dividend amount of 17 cents a share (68 cents a year).

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

Next, we take this amount and divide it by AZZ's $0.68 dividend: $6,000 / $0.68  = 8,824 shares

So, an investor would need to own approximately $660,035 worth of AZZ, or 8,824 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 / $0.68 = 1,765 shares, or $132,022 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.

AZZ Price Action: Shares of AZZ fell 0.9% to close at $74.80 on Friday.

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