Albertsons Companies, Inc. (ACI) is set to release third-quarter earnings before the market opens on Wednesday, Jan. 7, 2026. But ahead of that report, some investors are more interested in the grocery chain's dividend potential than its quarterly performance.
Analysts are forecasting earnings of 68 cents per share for the quarter, a slight decline from 71 cents per share in the same period last year. Revenue is expected to climb to $19.17 billion from $18.77 billion a year earlier, according to market data.
On the analyst front, Evercore ISI Group's Michael Montani maintained an In-Line rating on Dec. 23 while trimming his price target from $21 down to $20.
For dividend-focused investors, Albertsons currently offers an annual dividend yield of 3.47%. The company pays a quarterly dividend of 15 cents per share, which works out to 60 cents annually. That's a respectable yield in today's market, particularly for income-seeking investors who want exposure to the consumer staples sector.
The Math Behind $500 Monthly
So how much would you need to invest in Albertsons to pocket $500 every month from dividends? Let's break down the calculation.
First, we need to establish the annual target: $500 per month multiplied by 12 months equals $6,000 in yearly dividend income.
Next, we divide that annual goal by Albertsons' annual dividend payment: $6,000 divided by $0.60 equals 10,000 shares.
Bottom line: You'd need to own approximately 10,000 shares of Albertsons Companies, worth about $172,900 at current prices, to generate $500 in monthly dividend income.
For investors with a more modest goal of $100 monthly (or $1,200 annually), the math works out to 2,000 shares, representing an investment of approximately $34,580.
Understanding Dividend Yield Dynamics
It's important to remember that dividend yields aren't static. They fluctuate based on two moving parts: the dividend payment itself and the stock price.
Dividend yield is calculated by dividing the annual dividend payment by the current stock price. When the stock price moves, the yield changes inversely. For instance, if a stock pays a $2 annual dividend and trades at $50, the yield is 4%. If that stock climbs to $60, the yield drops to 3.33% ($2 divided by $60). Conversely, if the stock falls to $40, the yield jumps to 5% ($2 divided by $40).
The dividend payment can also change over time. When a company increases its dividend, the yield rises even if the stock price stays flat. Similarly, a dividend cut will reduce the yield regardless of share price movement.
Recent Price Action: Shares of Albertsons Companies declined 0.7% to close at $17.29 on Monday.