How To Earn $500 A Month From General Mills Stock After Earnings Beat

General Mills Inc GIS reported better-than-expected earnings for its first quarter.

The company reported first-quarter FY24 sales growth of 4% year-on-year to $4.90 billion, beating the analyst consensus of $4.88 billion. Adjusted EPS of $1.09 topped the consensus of $1.08.

General Mills reaffirmed its FY24 organic sales growth outlook of 3%-4%. The company expects FY24 adjusted EPS to grow 4%-6% in constant currency.

With General Mills reporting upbeat results, some investors may be eyeing potential gains from the company’s dividends. As of now, General Mills has a dividend yield of 3.57%, which is a quarterly dividend amount of $0.59 a share ($2.36 a year).

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

Next, we take this amount and divide it by General Mills’ $2.36 dividend: $6,000 / $2.36 = 2,542 shares

So, an investor would need to own approximately $167,442 worth of General Mills, or 2,542 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 / 2.36 = 508 shares, or $33,462 to generate a monthly dividend income of $100.

Also Read: Over $18M Bet On Asana? Check Out These 3 Stocks Insiders Are Buying

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.

GIS Price Action: Shares of General Mills fell 0.02% to close at $65.87 on Wednesday.

Check This Out: Top 4 Health Care Stocks That Could Lead To Your Biggest Gains In Q3

Photo: Shutterstock