How To Earn $500 A Month From Smith & Wesson Brands Stock Ahead Of Q1 Earnings Report

Smith & Wesson Brands, Inc. SWBI is set to release earnings results for its first quarter, after the closing bell on Thursday, Sept. 5.

Analysts expect the Maryville, Tennessee-based company to report a quarterly loss at 2 cents per share, versus a year-ago profit of 7 cents per share. Smith & Wesson Brands projects to report quarterly revenue of $102.53 million for the quarter, according to data from Benzinga Pro.

On June 20, Smith & Wesson reported quarterly earnings of 45 cents per share, which beat the analyst consensus estimate of 34 cents per share.

With the recent buzz around Smith & Wesson Brands, some investors may be eyeing potential gains from the company's dividends, too. Smith & Wesson Brands currently offers an annual dividend yield of 3.65%. That’s a quarterly dividend amount of 13 cents per share (52 cents 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 $164,417 or around 11,538 shares. For a more modest $100 per month or $1,200 per year, you would need $32,889 or around 2,308 shares.

To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($0.52 in this case). So, $6,000 / $0.52 = 11,538 ($500 per month), and $1,200 / $0.52 = 2,308 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.

SWBI Price Action: Shares of Smith & Wesson Brands fell 1.6% to close at $14.25 on Wednesday.

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