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

Weyerhaeuser Company WY will release earnings results for its third quarter, after the closing bell on Thursday, Oct. 24,

Analysts expect the company to report quarterly earnings at 1 cent per share, down from 33 cents per share in the year-ago period. Weyerhaeuser projects to report revenue of $1.68 billion for the recent quarter, compared to $2.02 billion a year earlier, according to data from Benzinga Pro.

On Oct. 15, Truist Securities analyst Michael Roxland maintained Weyerhaeuser with a Hold and raised the price target from $31 to $34.

With the recent buzz around Weyerhaeuser, some investors may be eyeing potential gains from the company's dividends too. As of now, Weyerhaeuser offers an annual dividend yield of 2.51%. That’s a quarterly dividend of 20 cents per share (80 cents a year).

Want to earn $500 monthly from Weyerhaeuser? Start with the yearly target of $6,000 ($500 x 12 months).

Next, we take this amount and divide it by Weyerhaeuser's $0.80 dividend: $6,000 / $0.80 = 7,500 shares

So, an investor would need to own approximately $238,875 worth of Weyerhaeuser, or 7,500 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 / $0.80 = 1,500 shares, or $47,775 to generate a monthly dividend income of $100.

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.

WY Price Action: Shares of Weyerhaeuser gained by 0.6% to close at $31.85 on Wednesday.

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