How To Earn $500 A Month From Newell Brands Stock Ahead Of Q4 Earnings

Newell Brands Inc. NWL will release its fourth-quarter financial results before the opening bell on Friday, Feb. 7.

Analysts expect the Atlanta-based company to report quarterly earnings at 14 cents per share. That’s down from 22 cents per share in the year-ago period. Newell Brands projects quarterly revenue of $1.96 billion, compared to $2.08 billion a year earlier, according to Benzinga Pro.

On Jan. 17, Barclays analyst Lauren Lieberman maintained Newell Brands with an Overweight rating and raised the price target from $10 to $11.

With the recent buzz around Newell Brands, some investors may be eyeing potential gains from the company's dividends too. Newell Brands currently offers an annual dividend yield of 2.89%. That’s a quarterly dividend amount of 7 cents per share (28 cents a year).

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

Next, we take this amount and divide it by Newell Brands' $0.28 dividend: $6,000 / $0.28 = 21,429 shares.

So, an investor would need to own approximately $207,861 worth of Newell Brands, or 21,429 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 / $0.28 = 4,286 shares, or $41,574 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.

Price Action: Shares of Newell Brands — which owns Rubbermaid, Yankee Candle, Sharpie, FoodSaver and Paper Mate, Dymo, Ball, and Campingaz — gained by 0.1% to close at $9.70 on Wednesday.

Read More:

• Jim Cramer: This Health Care Stock Is A ‘Winner,’ Buy Bitcoin Instead Of Coinbase

Image: Shutterstock