Lennar Corporation (NYSE:LEN) will release earnings results for the fourth quarter after the closing bell on Tuesday.
Analysts expect the company to report quarterly earnings at $2.18 per share, down from $4.03 per share in the year-ago period. The consensus estimate for Lennar’s quarterly revenue is $9.13 billion. Last year, it reported $9.95 billion in revenue, according to Benzinga Pro.
On Dec. 8, Barclays analyst Matthew Bouley downgraded Lennar from Equal-Weight to Underweight and raised the price target from $95 to $98.
With the recent buzz around Lennar, some investors may be eyeing potential gains from the company's dividends too. As of now, Lennar offers an annual dividend yield of 1.68%, which is a quarterly dividend amount of 50 cents per share ($2.00 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 $358,110 or around 3,000 shares. For a more modest $100 per month or $1,200 per year, you would need $71,622 or around 600 shares.
To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($2.00 in this case). So, $6,000 / $2.00 = 3,000 ($500 per month), and $1,200 / $2.00 = 600 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.
LEN Price Action: Shares of Lennar rose 0.2% to close at $119.37 on Friday.
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