How To Earn $500 A Month From Nucor Stock Ahead Of Q3 Earnings

Nucor Corporation NUE will release earnings results for its third quarter, before the opening bell on Monday, Oct. 21.

Analysts expect the Charlotte, North Carolina-based company to report quarterly earnings at $1.47 per share, down from $4.57 per share in the year-ago period. Nucor projects to report revenue of $7.28 billion for the recent quarter, according to data from Benzinga Pro.

On Oct. 9, JPMorgan analyst Bill Peterson maintained Nucor with an Overweight and lowered the price target from $174 to $170.

With the recent buzz around Nucor, some investors may be eyeing potential gains from the company's dividends too. As of now, Nucor offers an annual dividend yield of 1.37%, which is a quarterly dividend amount of 54 cents per share ($2.16 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 $439,174 or around 2,778 shares. For a more modest $100 per month or $1,200 per year, you would need $87,898 or around 556 shares.

To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($2.16 in this case). So, $6,000 / $2.16 = 2,778 ($500 per month), and $1,200 / $2.16 = 556 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.

NUE Price Action: Shares of Nucor gained 2.5% to close at $158.09 on Thursday.

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Courtesy of Nucor Corporation