Analysts expect the company to report quarterly earnings of 58 cents per share, down from $1.15 per share in the year-ago period. The consensus estimate for TSN’s quarterly revenue is $14.17 billion, compared with $13.86 billion a year earlier, according to Benzinga Pro.
On Oct. 7, Piper Sandler analyst Michael Lavery maintained an Overweight rating on Tyson Foods and cut the price target from $66 to $56.
With the recent buzz around Tyson Foods, some investors may be eyeing potential gains from the company’s dividends too. Based on Thursday’s closing price of $59.26, Tyson Foods has an annual dividend yield of 3.44%, from a quarterly dividend of 51 cents per share ($2.04 a year).
So, how can investors use its dividend yield to pocket a regular $500 monthly?
To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $174,284 or around 2,941 shares. For a more modest $100 per month or $1,200 per year, you would need $34,845 or around 588 shares.
To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($2.04 in this case). So, $6,000 / $2.04 = 2,941 shares ($500 per month), and $1,200 / $2.04 = 588 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.
TSN Price Action: Tyson Foods shares were up 2.24% at $60.59 at the time of publication Friday, according to Benzinga Pro data.
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