How To Earn $500 A Month From Constellation Brands Stock Ahead Of Q3 Earnings

Constellation Brands, Inc. (NYSE:STZ) will release earnings results for the third quarter after the closing bell on Wednesday, Jan. 7, 2025.

Analysts expect the company to report quarterly earnings at $2.64 per share, down from $3.25 per share in the year-ago period. The consensus estimate for Constellation's quarterly revenue is $2.16 billion, up from $2.46 billion a year earlier, according to data from Benzinga Pro.

On Dec. 17, Jefferies analyst Kaumil Gajrawala downgraded Constellation Brands from Buy to Hold and lowered the price target from $170 to $154.

With the recent buzz around Constellation Brands, some investors may be eyeing potential gains from the company's dividends too. As of now, Constellation offers an annual dividend yield of 2.96%, which is a quarterly dividend amount of $1.02 per share ($4.08 a year).  

So, how can investors exploit 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 $202,939 or around 1,471 shares. For a more modest $100 per month or $1,200 per year, you would need $40,560 or around 294 shares.

To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($4.08 in this case). So, $6,000 / $4.08 = 1,471 ($500 per month), and $1,200 / $4.08 = 294 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.

STZ Price Action: Constellation Brands shares were up 0.26% at $138.31 at the time of publication on Friday, according to Benzinga Pro data.

Read More:

• How To Earn $500 A Month From UniFirst Stock Ahead Of Q1 Earnings

Photo: The Image Party/Shutterstock