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

UniFirst Corporation (NYSE:UNF) will release earnings results for the first quarter before the opening bell on Wednesday, Jan. 7, 2025.

Analysts expect the company to report quarterly earnings at $2.06 per share, down from $2.40 per share in the year-ago period. UniFirst is expected to report revenue of $615.23 million, up from $604.91 million a year earlier, according to Benzinga Pro data.

On Dec. 22, Unifirst received an acquisition proposal from Cintas Corporation (NASDAQ:CTAS) for $275 per share in cash.

With the recent buzz around UniFirst, some investors may be eyeing potential gains from the company's dividends too. As of now, UniFirst offers an annual dividend yield of 0.75%, which is a quarterly dividend amount of 36.5 cents per share ($1.46 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 $801,738 or around 4,110 shares. For a more modest $100 per month or $1,200 per year, you would need $160,348 or around 822 shares.

To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($1.46 in this case). So, $6,000 / $1.46 = 4,110 ($500 per month), and $1,200 / $1.46 = 822 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.

UNF Price Action: Shares of UniFirst fell by 0.8% to close at $195.07 on Tuesday.

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