Campbell's Dividend Math: How Many Shares for $500 Monthly Income?

MarketDash Editorial Team

9 hours ago

With Campbell's offering a 5.27% annual dividend yield ahead of its Q1 earnings report, here's the math on how many shares you'd need to generate consistent monthly income from this dividend stalwart.

Campbell's Company (CPB) is set to release its first-quarter earnings on Tuesday, Dec. 9, before markets open. Wall Street expects earnings of 73 cents per share, down from 89 cents in the same period last year. Revenue projections come in at $2.66 billion, compared to $2.77 billion reported a year ago.

Not the most exciting forecast, admittedly. On Friday, Morgan Stanley analyst Megan Alexander kept her Equal-Weight rating but trimmed the price target from $33 to $30, reflecting some caution heading into the print.

But here's where things get interesting for income-focused investors: Campbell's currently offers a dividend yield of 5.27%. That's a quarterly payout of 39 cents per share, or $1.56 annually. With yields like that, some folks are wondering how they could turn Campbell's into a reliable income stream.

The $500 Monthly Dividend Math

So let's run the numbers. If you wanted to pocket $500 every month purely from Campbell's dividends, you'd need to generate $6,000 annually. The calculation is straightforward: divide your target annual income by the annual dividend per share.

For $500 monthly ($6,000 annually): You'd need approximately 3,846 shares, requiring an investment of roughly $113,842 at current prices.

For a more modest $100 monthly ($1,200 annually): You'd need about 769 shares, or around $22,762 invested.

The math here is simple division: $6,000 ÷ $1.56 = 3,846 shares for the $500 monthly target, and $1,200 ÷ $1.56 = 769 shares for the $100 monthly goal.

Understanding Dividend Yield Fluctuations

Here's the thing about dividend yields: they're not set in stone. The yield moves around based on two variables—the stock price and the dividend payment itself.

Dividend yield is calculated by dividing the annual dividend by the current stock price. So if a stock pays $2 annually and trades at $50, you've got a 4% yield ($2 ÷ $50). But if that stock climbs to $60, the yield drops to 3.33% ($2 ÷ $60). Conversely, if the price falls to $40, the yield jumps to 5% ($2 ÷ $40).

The dividend payment itself can change too. If Campbell's increases its dividend while the stock price holds steady, your yield goes up. Cut the dividend, and the yield drops accordingly.

Shares of Campbell's rose 0.8% on Friday, closing at $29.60. With earnings just around the corner, investors will be watching to see whether the company can stabilize its trajectory after last year's stronger performance.

Back to News

Campbell's Dividend Math: How Many Shares for $500 Monthly Income?

MarketDash Editorial Team

9 hours ago

The $500 Monthly Dividend Math

For $500 monthly ($6,000 annually): You'd need approximately 3,846 shares, requiring an investment of roughly $113,842 at current prices.

For a more modest $100 monthly ($1,200 annually): You'd need about 769 shares, or around $22,762 invested.

The math here is simple division: $6,000 ÷ $1.56 = 3,846 shares for the $500 monthly target, and $1,200 ÷ $1.56 = 769 shares for the $100 monthly goal.

Understanding Dividend Yield Fluctuations

Here's the thing about dividend yields: they're not set in stone. The yield moves around based on two variables—the stock price and the dividend payment itself.

The dividend payment itself can change too. If Campbell's increases its dividend while the stock price holds steady, your yield goes up. Cut the dividend, and the yield drops accordingly.