Waste Management, Inc. (NYSE:WM) will release earnings results for its third quarter, after the closing bell on Monday, Oct. 28,
Analysts expect the Houston, Texas-based company to report quarterly earnings at $1.89 per share, up from $1.63 per share in the year-ago period. Waste Management projects to report revenue of $5.51 billion for the recent quarter, compared to $5.2 billion a year earlier, according to data from Benzinga Pro.
On Oct. 3, William Blair analyst Trevor Romeo initiated coverage on Waste Management with an Outperform rating.
With the recent buzz around Waste Management, some investors may be eyeing potential gains from the company's dividends, too. Waste Management currently offers an annual dividend yield of 1.44%. That’s a quarterly dividend amount of 75 cents per share ($3.00 a year).
To figure out how to earn $500 monthly from Waste Management, start with the yearly target of $6,000 ($500 x 12 months).
Next, we take this amount and divide it by Waste Management's $3.00 dividend: $6,000 / $3.00 = 2,000 shares
So, an investor would need to own approximately $417,820 worth of Waste Management, or 2,000 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 / $3.00 = 400 shares, or $83,564 to generate a monthly dividend income of $100.
Note that dividend yield can change on a rolling basis (the dividend payment and the stock price 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 Waste Management fell by 1.4% to close at $208.91 on Thursday.
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