Analysts expect the Bentonville, Arkansas-based company to report quarterly earnings at 74 cents per share, up from 67 cents per share in the year-ago period. Walmart projects to report quarterly revenue at $174.32 billion, compared to $167.77 billion a year earlier, according to data from Benzinga Pro.
With the recent buzz around Walmart, some investors may be eyeing potential gains from the company's dividends. As of now, the retailer offers an annual dividend yield of 0.93%, which is a quarterly dividend amount of 23 cents per share (94 cents a year).
To figure out how to earn $500 monthly from Walmart, we start with the yearly target of $6,000 ($500 x 12 months).
Next, we take this amount and divide it by Walmart's 94-cent dividend: $6,000 / $0.94 = 6,383 shares.
So, an investor would need to own approximately $646,534 worth of Walmart, or 6,383 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 / $0.94 = 1,277 shares, or $129,347 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.
Let’s say 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.
WMT Price Action: Shares of Walmart rose by 0.6% to close at $101.29 on Tuesday.
On Monday, Guggenheim analyst John Heinbockel maintained a Buy rating on Walmart. He also raised the price target from $112 to $115.
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