Company Overview
Constellation Brands, Inc. STZ is poised to unveil its fourth-quarter (Q4) earnings report on April 11, 2024, triggering investor interest in the Victor, New York-based company’s dividend performance.
Diving Into Dividends
Currently, Constellation Brands boasts an annual dividend yield of 1.34%, equating to a quarterly dividend of 89 cents per share ($3.56 annually).
Seizing Opportunity
So, can investors harness this dividend yield to secure a steady $500 each month?
Strategic Investment Calculations
To achieve a monthly return of $500 or $6,000 annually through dividends, an investment of roughly $447,587 or around 1,685 shares would be required. For a more modest $100 per month or $1,200 per year, an investment of $89,517 or around 337 shares should suffice.
Understanding the Dynamics
The calculation involves dividing the desired annual income ($6,000 or $1,200) by the dividend payout ($3.56), resulting in the need for 1,685 shares for $500 per month and 337 shares for $100 per month.
It is crucial to note that dividend yields are subject to change as both dividend payments and stock prices fluctuate over time.
Cracking the Code
How It Works: Dividend yield is calculated by dividing the annual dividend payment by the stock’s prevailing price.
For example, if a stock pays an annual dividend of $2 and is priced at $50, the dividend yield stands at 4% ($2/$50). Should the stock price rise to $60, the dividend yield decreases to 3.33% ($2/$60). Conversely, a drop in stock price to $40 would push the dividend yield to 5% ($2/$40).
Moreover, alterations in the dividend payment influence the yield. An increase in dividends elevates the yield, assuming the stock price remains constant. Conversely, a reduction in dividend payments would lead to a lower yield.
Market Performance
STZ Price Action: Constellation Brands’ shares climbed by 0.5% to close at $265.63 on the preceding Friday.
Analysts anticipate the beer and spirits giant to announce earnings of $2.09 per share for the current week, up from $1.98 per share in the comparable period last year.
Projected quarterly revenue for Constellation stands at $2.1 billion, an increase from $2 billion in the corresponding quarter of the prior year, as per data from Benzinga Pro.
On April 5, Barclays analyst Lauren Lieberman reaffirmed her bullish stance on Constellation Brands with an Overweight rating while revising the price target to $294 from $296.
Image: Constellation Brands
