Nucor Corporation (NYSE:NUE) will release earnings results for the second quarter after the closing bell on Monday, July 28.
Analysts expect the Charlotte, North Carolina-based company to report quarterly earnings of $2.70 per share, compared to $2.68 per share in the same period last year. Nucor projects to report quarterly revenue of $8.48 billion. Compare that to the $8.08 billion in the same quarter a year earlier, according to data from Benzinga Pro.
With the recent buzz around Nucor, some investors may be eyeing potential gains from the company's dividends. Currently, Nucor offers an annual dividend yield of 1.56%, which is a semi-annual dividend amount of 54 cents per share ($2.20 a year). So, how can investors capitalize on its dividend yield to earn a regular $500 monthly?
To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $385,680 or around 2,727 shares. For a more modest $100 per month or $1,200 per year, you would need $77,079 or around 545 shares.
To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($2.20 in this case). So, $6,000 / $2.20 = 2,727 ($500 per month), and $1,200 / $2.20 = 545 shares ($100 per month).
Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.
How that works: The dividend yield is computed by dividing the annual dividend payment by the stock’s current price.
For example, if a stock pays an annual dividend of $2 and is currently priced at $50, the dividend yield would be 4% ($2/$50). However, if the stock price increases to $60, the dividend yield drops to 3.33% ($2/$60). Conversely, if the stock price falls to $40, the dividend yield rises to 5% ($2/$40).
Similarly, changes in the dividend payment can impact the yield. If a company increases its dividend, the yield will also increase, provided the stock price stays the same. Conversely, if the dividend payment decreases, so will the yield.
NUE Price Action: Shares of Nucor fell 2.5% to close at $141.43 on Thursday.
On July 14, JPMorgan analyst Bill Peterson maintained Nucor with an Overweight rating and raised the price target from $143 to $162.
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