How To Earn $500 A Month From Calavo Growers Ahead Of Q1 Earnings

Some investors may be eyeing potential gains from Calavo Growers, Inc.'s CVGW dividends. The Santa Paula, California-based company currently has a dividend yield of 1.37%, which is a quarterly dividend amount of 10 cents a share (40 cents a year).

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

Next, we take this amount and divide it by Calavo Growers’ 40 cents dividend: $6,000 / $0.40 = 15,000 shares

So, an investor would need to own approximately $439,500 worth of Calavo Growers, or 15,000 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 / $0.40 = 3,000 shares, or $87,900 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.

CVGW Price Action: Shares of Calavo Growers fell 0.5% to close at $29.30 on Friday. Analysts expect the company to report quarterly earnings at 17 cents per share, versus a year-ago loss of 8 cents per share.

Calavo Growers is set to release earnings results for its first quarter after the closing bell on March 11, 2024. It is projected to post revenue of $252.67 million for the latest quarter, according to data from Benzinga Pro.

On Jan. 31, Calavo Growers reported worse-than-expected fourth-quarter financial results.

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