Celanese Corporation (NYSE:CE) will release earnings results for the second quarter after the closing bell on Monday, Aug. 11.
Analysts expect the Irving, Texas-based company to report quarterly earnings at $1.40 per share. That’s down from $2.38 per share in the year-ago period. Celanese is projected to report quarterly revenue at $2.49 billion, compared to $2.65 billion a year earlier, according to data from Benzinga Pro.
With the recent buzz around Celanese, some investors may be eyeing potential gains from the company's dividends. As of now, Celanese offers an annual dividend yield of 0.25% — a quarterly dividend amount of 3 cents per share (12 cents a year).
To figure out how to earn $500 monthly from Celanese, we start with the yearly target of $6,000 ($500 x 12 months).
Next, we take this amount and divide it by Celanese's $0.12 dividend: $6,000 / $0.12 = 50,000 shares.
So, an investor would need to own approximately $2,432,500 worth of Celanese, or 6,000 shares to generate a monthly dividend income of $500.
Assuming a more conservative goal of $100 per month ($1,200 annually), we perform the same calculation:
- $1,200 / $0.12 = 10,000 shares, or $486,500 to generate a monthly dividend income of $100.
Please note that the 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.
Say that a stock pays an annual dividend of $2. If 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.
CE Price Action: Shares of Celanese gained by 1.7% to close at $48.65 on Thursday.
On July 15, Mizuho analyst John Roberts maintained Celanese with a Neutral and raised the price target from $50 to $59.
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