Medtronic plc (NYSE:MDT) will release its first earnings report before the opening bell on Tuesday, Sept. 1.
Analysts expect the company to report quarterly earnings of $1.39 per share, up from $1.26 per share in the year-ago period. The consensus estimate for Medtronic’s quarterly revenue is $9.54 billion. It reported $8.54 billion last year, according to Benzinga Pro.
Ahead of quarterly earnings, TD Cowen analyst Joshua Jennings maintained Medtronic at Buy on Friday and raised the price target from $100 to $110.
With the recent buzz around Medtronic, some investors may be eyeing potential gains from the company’s dividends too. As of now, Medtronic has an annual dividend yield of 3.16%, with a quarterly dividend of 72 cents per share ($2.88 per year).
So, how can investors use its dividend yield to pocket a regular $500 per month?
To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $190,032 or around 2,083 shares. For a more modest $100 per month or $1,200 per year, you would need $38,043 or around 417 shares.
To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($2.88 in this case). So, $6,000 / $2.88 = 2,083 ($500 per month), and $1,200 / $2.88 = 417 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 dividend payments can affect 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.
MDT Price Action: Shares of Medtronic gained 1.4% to close at $91.23 on Friday.
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