General Mills, Inc. (NYSE:GIS) will release earnings results for its second quarter before the opening bell on Wednesday, Dec. 17.
Analysts expect the company to report quarterly earnings at $1.02 per share, down from $1.40 per share in the year-ago period. The consensus estimate for General Mills’ quarterly revenue is $4.78 billion. Last year, it reported $5.24 billion in revenue, according to Benzinga Pro.
Some investors may be eyeing potential gains from the company's dividends, too. As of now, General Mills has an annual dividend yield of 5.18%; that’s a quarterly dividend of 61 cents per share ($2.44 a year).
To determine how to earn $500 per month from General Mills, we start with the annual target of $6,000 ($500 x 12 months).
Next, we take this amount and divide it by General Mills' $2.44 dividend: $6,000 / $2.44 = 2,459 shares.
So, an investor would need to own approximately $115,721 worth of General Mills, or 2,459 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 / $2.44 = 492 shares, or $23,154 to generate a monthly dividend income of $100.
The dividend yield can change on a rolling basis (the 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).
Furthermore, the dividend payment can change over time, which can affect the dividend yield. If a company increases its dividend, the dividend yield will rise even if the stock price remains unchanged. Similarly, if a company reduces its dividend, the dividend yield will decline.
GIS Price Action: Shares of General Mills gained by 0.8% to close at $47.06 on Monday.
On Monday, TD Cowen analyst Robert Moskow maintained a Hold rating on General Mills. He lowered the price target from $48 to $45.
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