How To Earn $500 A Month From Wynn Resorts Stock Ahead Of Q2 Earnings Report

Wynn Resorts, Limited WYNN is set to release earnings results for its third quarter, after the closing bell on Tuesday.

Analysts expect the Las Vegas, Nevada-based company to report quarterly earnings at $1.14 per share, up from 91 cents per share in the year-ago period. Wynn Resorts projects to report quarterly revenue of $1.75 billion for the quarter, up from $1.54 billion a year ago, according to data from Benzinga Pro.

On July 12, Morgan Stanley analyst Stephen Grambling maintained Wynn Resorts with an Equal-Weight rating and lowered the price target from $115 to $107.

With the recent buzz around Wynn Resorts, some investors may be eyeing potential gains from the company's dividends too. As of now, Wynn Resorts offers an annual dividend yield of 1.36%, which is a quarterly dividend amount of 25 cents per share ($1.00 a year).

So, how can investors exploit its dividend yield to pocket a regular $500 monthly?

To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $441,300 or around 6,000 shares. For a more modest $100 per month or $1,200 per year, you would need $88,260 or around 1,200 shares.

To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($1.00 in this case). So, $6,000 / $1.00 = 6,000 ($500 per month), and $1,200 / $1.00 = 1,200 shares ($100 per month).

Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.

How that works: The dividend yield is computed by dividing the annual dividend payment by the stock’s current price.

For example, if a stock pays an annual dividend of $2 and is currently priced at $50, the dividend yield would be 4% ($2/$50). However, if the stock price increases to $60, the dividend yield drops to 3.33% ($2/$60). Conversely, if the stock price falls to $40, the dividend yield rises to 5% ($2/$40).

Similarly, changes in the dividend payment can impact the yield. If a company increases its dividend, the yield will also increase, provided the stock price stays the same. Conversely, if the dividend payment decreases, so will the yield.

WYNN Price Action: Shares of Wynn Resorts fell 4.2% to close at $73.55 on Monday.

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