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Strategies To Make Profits From Ameren Stock Dividends Strategies To Make Profits From Ameren Stock Dividends

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Analyst Predictions for Ameren’s Q4 Fiscal 2024 Earnings

Ameren Corporation AEE is gearing up to unveil its financial performance for the fourth quarter of fiscal 2024, after the markets close on Feb. 22, 2024. Analysts anticipate quarterly earnings to come in at 61 cents per share, down from 63 cents per share in the same period last year. Revenue is projected to reach $2.03 billion, a slight dip from $2.05 billion a year earlier, according to data from Benzinga Pro.

Ameren’s Dividend Growth and Yield

Ameren recently raised its quarterly cash dividend by 6.3%, marking an impressive 11 consecutive years of dividend growth. This move has sparked considerable interest among investors, with the company’s annual dividend yield standing at 3.75%, translating to a quarterly dividend amount of 67 cents per share ($2.68 annually).

Earning From Ameren’s Dividends

Given the surging interest in Ameren, many investors are eyeing potential gains from the company’s dividends. To earn $500 per month or $6,000 annually from dividends alone, investors would need an investment of approximately $159,865 or around 2,239 shares. For a more modest $100 per month or $1,200 per year, an investment of $31,987 or around 448 shares would suffice.

To calculate, divide the desired annual income ($6,000 or $1,200) by the dividend ($2.68 in this case). So, $6,000 / $2.68 = 2,239 shares ($500 per month), and $1,200 / $2.68 = 448 shares ($100 per month). It’s crucial to note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.

Understanding Dividend Yield Fluctuations

Dividend yield is computed by dividing the annual dividend payment by the stock’s current price. For instance, 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).

In the same vein, changes in the dividend payment can impact the yield. If a company increases its dividend, the yield will also increase, provided the stock price remains constant. Conversely, if the dividend payment decreases, so will the yield.

Recent Stock Performance

AEE Price Action: Shares of Ameren recorded a 2.2% rise, closing at $71.40 on Wednesday.

Read More: Hedge funds intend to snatch all pre-IPO shares of future AI unicorns before you can. But there is one venture product investing on your behalf.

Image created with a photo from Shutterstock.

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