Marketdash
Back to News

Can You Really Earn $500 Monthly From Toll Brothers Stock?

MarketDash Editorial Team
3 days ago
With Toll Brothers releasing Q4 earnings on Dec. 8, investors are eyeing the homebuilder's dividend potential. Analysts expect $4.88 per share in earnings and $3.32 billion in revenue, while the stock's 0.71% yield offers income opportunities for patient investors.

Toll Brothers, Inc. (TOL) is gearing up to report fourth-quarter earnings after the bell on Monday, Dec. 8, and the homebuilder has caught Wall Street's attention ahead of the release.

Analysts are expecting quarterly earnings of $4.88 per share, up from $4.63 in the same period last year. Revenue estimates come in at $3.32 billion, essentially flat compared to last year's $3.33 billion. The recent momentum got a boost when JP Morgan analyst Michael Rehaut upgraded Toll Brothers from Neutral to Overweight on Thursday, slapping a $161 price target on the stock.

But here's an angle some investors might find interesting: beyond potential stock appreciation, Toll Brothers pays a dividend. At current levels, the annual dividend yield sits at 0.71%, which breaks down to 25 cents per share quarterly, or $1.00 per year.

So let's play with some numbers. How much would you actually need to invest to pocket a steady $500 every month from dividends alone?

The Math Behind Monthly Dividend Income

To pull in $500 monthly, you're targeting $6,000 annually. With Toll Brothers paying $1.00 per share each year, you'd need approximately 6,000 shares. At the current price, that's an investment of roughly $846,360.

Looking for something more modest? To earn $100 per month ($1,200 annually), you'd need around 1,200 shares, which translates to about $169,272 at current pricing.

The calculation itself is straightforward: divide your target annual income by the annual dividend per share. So $6,000 divided by $1.00 equals 6,000 shares for the $500 monthly target, and $1,200 divided by $1.00 equals 1,200 shares for the $100 monthly goal.

Understanding Dividend Yield Dynamics

Here's the thing about dividend yields—they're not static. The yield fluctuates based on two moving parts: the dividend payment and the stock price.

The dividend yield is calculated by dividing the annual dividend by the current stock price. Picture a stock paying $2 annually while trading at $50. That's a 4% yield ($2 divided by $50). But if the stock climbs to $60, the yield drops to 3.33% ($2 divided by $60). Conversely, if shares fall to $40, the yield jumps to 5% ($2 divided by $40).

Changes in the actual dividend payment matter too. When a company increases its dividend while the stock price holds steady, the yield rises. Cut the dividend, and the yield falls accordingly.

Shares of Toll Brothers closed down 1.2% at $141.06 on Thursday as investors await next week's earnings report.

Back to News

Can You Really Earn $500 Monthly From Toll Brothers Stock?

MarketDash Editorial Team
3 days ago
With Toll Brothers releasing Q4 earnings on Dec. 8, investors are eyeing the homebuilder's dividend potential. Analysts expect $4.88 per share in earnings and $3.32 billion in revenue, while the stock's 0.71% yield offers income opportunities for patient investors.

Toll Brothers, Inc. (TOL) is gearing up to report fourth-quarter earnings after the bell on Monday, Dec. 8, and the homebuilder has caught Wall Street's attention ahead of the release.

Analysts are expecting quarterly earnings of $4.88 per share, up from $4.63 in the same period last year. Revenue estimates come in at $3.32 billion, essentially flat compared to last year's $3.33 billion. The recent momentum got a boost when JP Morgan analyst Michael Rehaut upgraded Toll Brothers from Neutral to Overweight on Thursday, slapping a $161 price target on the stock.

But here's an angle some investors might find interesting: beyond potential stock appreciation, Toll Brothers pays a dividend. At current levels, the annual dividend yield sits at 0.71%, which breaks down to 25 cents per share quarterly, or $1.00 per year.

So let's play with some numbers. How much would you actually need to invest to pocket a steady $500 every month from dividends alone?

The Math Behind Monthly Dividend Income

To pull in $500 monthly, you're targeting $6,000 annually. With Toll Brothers paying $1.00 per share each year, you'd need approximately 6,000 shares. At the current price, that's an investment of roughly $846,360.

Looking for something more modest? To earn $100 per month ($1,200 annually), you'd need around 1,200 shares, which translates to about $169,272 at current pricing.

The calculation itself is straightforward: divide your target annual income by the annual dividend per share. So $6,000 divided by $1.00 equals 6,000 shares for the $500 monthly target, and $1,200 divided by $1.00 equals 1,200 shares for the $100 monthly goal.

Understanding Dividend Yield Dynamics

Here's the thing about dividend yields—they're not static. The yield fluctuates based on two moving parts: the dividend payment and the stock price.

The dividend yield is calculated by dividing the annual dividend by the current stock price. Picture a stock paying $2 annually while trading at $50. That's a 4% yield ($2 divided by $50). But if the stock climbs to $60, the yield drops to 3.33% ($2 divided by $60). Conversely, if shares fall to $40, the yield jumps to 5% ($2 divided by $40).

Changes in the actual dividend payment matter too. When a company increases its dividend while the stock price holds steady, the yield rises. Cut the dividend, and the yield falls accordingly.

Shares of Toll Brothers closed down 1.2% at $141.06 on Thursday as investors await next week's earnings report.