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The Path to Passive Income: A Dive into Calavo Growers Dividend Strategy

The Path to Passive Income: A Dive into Calavo Growers Dividend Strategy

Investors eyeing potential gains from Calavo Growers, Inc.’s (NASDAQ: CVGW) dividends might just be onto something. The Santa Paula, California-based company’s current dividend yield of 1.37% equates to a quarterly dividend amount of 10 cents per share (40 cents annually).

Calculating Monthly Dividend Earnings

To aim for a $500 monthly dividend income from Calavo Growers, the target would be $6,000 annually ($500 x 12 months).

Dividing this sum by Calavo Growers’ 40 cents dividend results in the need for 15,000 shares to meet the monthly income goal: $6,000 / $0.40 = 15,000 shares.

Therefore, an investor would need approximately $439,500 worth of Calavo Growers, holding 15,000 shares, to generate a $500 monthly dividend income.

For a more conservative monthly goal of $100 ($1,200 annually), the calculation remains the same: $1,200 / $0.40 = 3,000 shares, requiring an investment of $87,900 to yield a monthly dividend of $100.

Understanding Dividend Yields

The dividend yield from Calavo Growers is determined by dividing the annual dividend payment by the current stock price. As stock prices and dividend payments fluctuate, the yield also changes.

As an illustration, a stock with a $2 annual dividend and a $50 price tag would yield 4%. If the stock price rises to $60, the yield falls to 3.33% ($2/$60). Conversely, at $40 per share, the yield climbs to 5% ($2/$40).

Moreover, alterations in the dividend payment itself can affect the yield. A rise in dividends escalates the yield, even if the stock price is static. Conversely, a cut in dividends reduces the yield.

CVGW Performance Overview

Calavo Growers witnessed a 0.5% dip in shares to close at $29.30 on Friday. Analysts anticipate the company to announce quarterly earnings of 17 cents per share, an improvement from a loss of 8 cents per share a year prior.

Keep an eye out for Calavo Growers’ first-quarter earnings post-market close on March 11, 2024. Projections indicate a revenue figure of $252.67 million for the latest quarter.

After an underwhelming fourth-quarter financial report released on January 31, expectations are high for Calavo Growers as they approach their next earnings announcement.

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