Dollar General Corp (NYSE:DG) posted better-than-expected earnings for its fourth quarter on Thursday.
The Goodlettsville, Tennessee-based retailer reported a four-quarter FY23 sales decline of 3.4% year-on-year to $9.858 billion, beating the analyst consensus estimate of $9.783 billion. EPS of $1.83 beat the consensus estimate of $1.75, according to data from Benzinga Pro.
On March 13, 2024, the company’s board declared a quarterly cash dividend of 59 cents per share on its common stock, payable on or before April 23, 2024, to shareholders of record on April 9, 2024.
With the recent buzz around Dollar General, some investors may be eyeing potential gains from the company’s dividends. As of now, Dollar General has a dividend yield of 1.57%, which is a quarterly dividend amount of 59 cents a share ($2.36 a year).
To figure out how to earn $500 monthly from Dollar General, we start with the yearly target of $6,000 ($500 x 12 months).
Next, we take this amount and divide it by Dollar General’s $2.36 dividend: $6,000 / $2.36 = 2,542 shares
So, an investor would need to own approximately $381,453 worth of Dollar General, or 2,542 shares to generate a monthly dividend income of $500.
Assuming a more conservative goal of $100 monthly ($1,200 annually), we do the same calculation: $1,200 / $2.36 = 508 shares, or $76,230 to generate a monthly dividend income of $100.
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Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.
The dividend yield is calculated by dividing the annual dividend payment by the current stock price. As the stock price changes, the dividend yield will also change.
For example, if a stock pays an annual dividend of $2 and its current price is $50, its dividend yield would be 4%. However, if the stock price increases to $60, the dividend yield would decrease to 3.33% ($2/$60).
Conversely, if the stock price decreases to $40, the dividend yield would increase to 5% ($2/$40).
Further, the dividend payment itself can also change over time, which can also impact the dividend yield. If a company increases its dividend payment, the dividend yield will increase even if the stock price remains the same. Similarly, if a company decreases its dividend payment, the dividend yield will decrease.
DG Price Action: Shares of Dollar General fell 5.1% to close at $150.06 on Thursday.
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