How To Earn $500 A Month From J.M. Smucker Stock After Strong Earnings

J.M. Smucker Company SJM reported better-than-expected earnings for its second quarter on Tuesday.

The company posted a second-quarter FY24 sales decline of 12% year-on-year to $1.94 billion, missing the analyst consensus of $1.95 billion. Adjusted EPS of $2.59 beat the consensus estimate of $2.47, according to Benzinga Pro.

J.M. Smucker revised FY24 adjusted EPS guidance to $9.25 - $9.65 (prior $9.45 - $9.85) versus the consensus of $9.48.

With the recent buzz around Smucker following upbeat earnings, some investors may be eyeing potential gains from the company’s dividends. As of now, Smucker has a dividend yield of 3.65%, which is a quarterly dividend amount of $1.06 a share ($4.24 a year).

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

Next, we take this amount and divide it by Smucker $4.24 dividend: $6,000 / $4.24 = 1,415 shares

So, an investor would need to own approximately $164,310 worth of Smucker, or 1,415 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 / $4.24 = 283 shares, or $32,862 to generate a monthly dividend income of $100.

Also Read: Insiders Buying Hillenbrand And 2 Other Stocks

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.

SJM Price Action: Shares of Smucker gained 3.3% to close at $116.12 on Tuesday.

Read More: Warren Buffett once said, “If you don’t find a way to make money while you sleep, you will work until you die.” Here are 3 high-yield investments to add significant income to your portfolio.