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Calculating Your UniFirst Dividend Income Ahead of Q1 Results

MarketDash Editorial Team
3 hours ago
UniFirst reports Q1 earnings on Jan. 7, with analysts expecting $2.06 per share versus $2.40 last year. The company recently received a $275 per share acquisition offer from Cintas and offers a 0.75% dividend yield for income-focused investors.

UniFirst Corporation (UNF) is about to share its first quarter earnings report, and there's more than just the numbers to consider here. The uniform and workwear rental company will release results before the market opens on Wednesday, Jan. 7, 2025.

Analysts are projecting earnings of $2.06 per share, which represents a decline from the $2.40 per share reported in the same quarter last year. On the revenue side, expectations are more optimistic with forecasts of $615.23 million compared to $604.91 million a year earlier, according to market data.

The earnings report comes at an interesting moment for UniFirst. On Dec. 22, the company received an acquisition proposal from Cintas Corporation (CTAS) offering $275 per share in cash. That kind of takeover interest naturally gets investors thinking about the various ways to profit from holding the stock.

For income-focused investors, UniFirst's dividend profile might be worth examining. The company currently offers an annual dividend yield of 0.75%, distributing 36.5 cents per share quarterly, which adds up to $1.46 per year.

Breaking Down the Dividend Math

Let's say you wanted to generate $500 in monthly dividend income from UniFirst shares. That's $6,000 annually. Here's what it would take: you'd need to invest approximately $801,738, which translates to around 4,110 shares at current levels.

If that sounds like a hefty commitment, consider a more modest goal. To pocket $100 per month or $1,200 annually, you'd need an investment of about $160,348, or roughly 822 shares.

The calculation is straightforward: divide your desired annual income by the annual dividend payment. So $6,000 divided by $1.46 equals 4,110 shares for the $500 monthly target, and $1,200 divided by $1.46 equals 822 shares for the $100 monthly goal.

Understanding Dividend Yield Dynamics

It's important to remember that dividend yields aren't static. They move around based on two variables: the dividend payment itself and the stock price.

The yield is calculated by dividing the annual dividend payment by the current stock price. Consider a simple example: if a stock pays a $2 annual dividend and trades at $50, the dividend yield is 4% ($2 divided by $50). But if that stock price climbs to $60, the yield drops to 3.33% ($2 divided by $60). If the stock falls to $40, the yield jumps to 5% ($2 divided by $40).

The same dynamic applies to changes in the dividend payment. When a company increases its dividend while the stock price remains unchanged, the yield rises. Cut the dividend, and the yield falls accordingly.

Recent Price Action: UniFirst shares closed at $195.07 on Tuesday, down 0.8% for the session.

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Calculating Your UniFirst Dividend Income Ahead of Q1 Results

MarketDash Editorial Team
3 hours ago
UniFirst reports Q1 earnings on Jan. 7, with analysts expecting $2.06 per share versus $2.40 last year. The company recently received a $275 per share acquisition offer from Cintas and offers a 0.75% dividend yield for income-focused investors.

UniFirst Corporation (UNF) is about to share its first quarter earnings report, and there's more than just the numbers to consider here. The uniform and workwear rental company will release results before the market opens on Wednesday, Jan. 7, 2025.

Analysts are projecting earnings of $2.06 per share, which represents a decline from the $2.40 per share reported in the same quarter last year. On the revenue side, expectations are more optimistic with forecasts of $615.23 million compared to $604.91 million a year earlier, according to market data.

The earnings report comes at an interesting moment for UniFirst. On Dec. 22, the company received an acquisition proposal from Cintas Corporation (CTAS) offering $275 per share in cash. That kind of takeover interest naturally gets investors thinking about the various ways to profit from holding the stock.

For income-focused investors, UniFirst's dividend profile might be worth examining. The company currently offers an annual dividend yield of 0.75%, distributing 36.5 cents per share quarterly, which adds up to $1.46 per year.

Breaking Down the Dividend Math

Let's say you wanted to generate $500 in monthly dividend income from UniFirst shares. That's $6,000 annually. Here's what it would take: you'd need to invest approximately $801,738, which translates to around 4,110 shares at current levels.

If that sounds like a hefty commitment, consider a more modest goal. To pocket $100 per month or $1,200 annually, you'd need an investment of about $160,348, or roughly 822 shares.

The calculation is straightforward: divide your desired annual income by the annual dividend payment. So $6,000 divided by $1.46 equals 4,110 shares for the $500 monthly target, and $1,200 divided by $1.46 equals 822 shares for the $100 monthly goal.

Understanding Dividend Yield Dynamics

It's important to remember that dividend yields aren't static. They move around based on two variables: the dividend payment itself and the stock price.

The yield is calculated by dividing the annual dividend payment by the current stock price. Consider a simple example: if a stock pays a $2 annual dividend and trades at $50, the dividend yield is 4% ($2 divided by $50). But if that stock price climbs to $60, the yield drops to 3.33% ($2 divided by $60). If the stock falls to $40, the yield jumps to 5% ($2 divided by $40).

The same dynamic applies to changes in the dividend payment. When a company increases its dividend while the stock price remains unchanged, the yield rises. Cut the dividend, and the yield falls accordingly.

Recent Price Action: UniFirst shares closed at $195.07 on Tuesday, down 0.8% for the session.