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

Stepan Company SCL is expected to release earnings results for its fourth quarter, before the opening bell on Feb. 20, 2024.

Analysts expect the Northbrook, Illinois-based company to report quarterly earnings at 37 cents per share, down from year-ago earnings of 59 cents per share. Stepan is projected to post revenue of $534.53 billion for the latest quarter, compared to $627.18 million in the year-earlier quarter, according to data from Benzinga Pro.

Stepan recently announced the appointment of Susan M. Lewis as a director, effective on Feb. 15.

During October, the company reported a third-quarter FY23 sales decrease of 22% year-on-year, to $562.226 million, missing the analyst consensus of $603.72 million owing to lower selling prices.

With the recent buzz around Stepan, some investors may be eyeing potential gains from the company’s dividends. As of now, Stepan has a dividend yield of 1.68%, which is a quarterly dividend amount of 37.50 cents a share ($1.50 a year).

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

Next, we take this amount and divide it by Stepan’s $1.50 dividend: $6,000 / $1.50 = 4,000 shares

So, an investor would need to own approximately $373,400 worth of Stepan, or 4,000 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 / $1.50 = 800 shares, or $74,680 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.

SCL Price Action: Shares of Stepan gained 4.4% to close at $93.35 on Thursday.

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