ABM Industries Incorporated ABM is gearing up to unveil its first-quarter earnings report on March 7, 2024, before the opening bell.

Financial analysts are predicting that the New York-based company will announce quarterly earnings at 71 cents per share, a dip from the 79 cents per share reported a year earlier. Nordstrom is expected to reveal revenue of $2.01 billion for the latest quarter, as per data from Benzinga Pro.

ABM recently made waves with its facility services partnership with the Arizona Diamondbacks and Chase Field.

Amidst the heightened interest in ABM, some investors may be contemplating potential returns from the company’s dividends. At present, ABM boasts a dividend yield of 2.18%, translating to a quarterly dividend of 22.5 cents per share (90 cents annually).

To reach a monthly dividend income of $500 from ABM, let’s aim for an annual target of $6,000 ($500 x 12 months).

Following this, dividing this amount by ABM’s $0.90 dividend reveals the need to possess 6,667 shares ($6,000 / $0.90 = 6,667 shares).

Hence, an investor would have to own around $271,680 worth of ABM, or 6,667 shares, to generate a monthly dividend income of $500.

If one opts for a more conservative objective of $100 monthly ($1,200 yearly), applying the same calculation computes the necessity of 1,333 shares ($1,200 / $0.90 = 1,333 shares), costing $54,320 to secure a monthly dividend income of $100.

Also Read: Jim Cramer Says This Is A ‘Smart Consulting Company,’ Calls Commercial Metals Company A Winner

It’s worth noting that the dividend yield is subject to alterations on a continuous basis, fluctuating with shifts in both dividend payouts and stock prices.

The dividend yield is determined by dividing the annual dividend payment by the current stock price. As stock prices vary, the dividend yield will likewise fluctuate.

For instance, if a stock issues an annual dividend of $2 and its prevailing price is $50, the dividend yield would be 4%. However, should the stock price surge to $60, the dividend yield would decrease to 3.33% ($2/$60).

On the flip side, if the stock price drops to $40, the dividend yield would upsurge to 5% ($2/$40).

Moreover, fluctuations in the dividend payment itself can impact the dividend yield. An increase in the dividend payment leads to an increase in the dividend yield, even if the stock price remains constant. Conversely, a decrease in the dividend payment results in a decreased dividend yield.

ABM Price Action: The shares of ABM Industries slipped 1.2% to conclude at $40.75 on Tuesday.

Read This Next: Jim Cramer: This Semiconductor Company Is ‘Too Late To Auto,’ But Super Micro Is ‘Too Hot’

Photo: Shutterstock