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Generating $500 Monthly From Constellation Brands Dividends: What You'd Need

MarketDash Editorial Team
3 hours ago
With Constellation Brands set to report Q3 earnings on Jan. 7, here's how much you'd need to invest to pocket $500 a month from its dividend payments.

Constellation Brands, Inc. (STZ) is gearing up to release its third-quarter earnings results after the market closes on Wednesday, Jan. 7, 2025. But while investors wait for those numbers, some are looking at another angle: the company's dividend payments.

Wall Street analysts are forecasting quarterly earnings of $2.64 per share, which would represent a decline from the $3.25 per share reported in the same period last year. On the revenue side, the consensus estimate sits at $2.16 billion, up from $2.46 billion a year earlier.

The recent sentiment hasn't been entirely rosy. On Dec. 17, Jefferies analyst Kaumil Gajrawala downgraded Constellation Brands from Buy to Hold and slashed the price target from $170 to $154.

But here's where things get interesting for income-focused investors: Constellation currently offers an annual dividend yield of 2.96%, paying out $1.02 per share quarterly, or $4.08 annually. So if you're someone who likes the idea of regular dividend checks, how much would you actually need to invest to generate meaningful income?

To pocket $500 per month or $6,000 annually from dividends alone, you'd need an investment of approximately $202,939, which translates to around 1,471 shares. If your target is more modest at $100 per month or $1,200 per year, you'd need $40,560 or around 294 shares.

The math: Divide your desired annual income ($6,000 or $1,200) by the annual dividend payment ($4.08). So $6,000 / $4.08 = 1,471 shares (for $500 monthly), and $1,200 / $4.08 = 294 shares (for $100 monthly).

Keep in mind that dividend yields aren't static. They fluctuate as both the dividend payment and stock price change over time.

Understanding dividend yield: The yield is calculated by dividing the annual dividend payment by the current stock price.

Here's a practical example: If a stock pays an annual dividend of $2 and trades at $50, the dividend yield is 4% ($2/$50). But if that stock price climbs to $60, the yield drops to 3.33% ($2/$60). On the flip side, if the price falls to $40, the yield jumps to 5% ($2/$40).

The same principle applies to dividend payment changes. When a company increases its dividend while the stock price remains steady, the yield rises. When the dividend gets cut, the yield falls accordingly.

Price movement: Constellation Brands shares were trading up 0.26% at $138.31 at the time of publication on Friday.

Back to Stock Market News

Generating $500 Monthly From Constellation Brands Dividends: What You'd Need

MarketDash Editorial Team
3 hours ago
With Constellation Brands set to report Q3 earnings on Jan. 7, here's how much you'd need to invest to pocket $500 a month from its dividend payments.

Constellation Brands, Inc. (STZ) is gearing up to release its third-quarter earnings results after the market closes on Wednesday, Jan. 7, 2025. But while investors wait for those numbers, some are looking at another angle: the company's dividend payments.

Wall Street analysts are forecasting quarterly earnings of $2.64 per share, which would represent a decline from the $3.25 per share reported in the same period last year. On the revenue side, the consensus estimate sits at $2.16 billion, up from $2.46 billion a year earlier.

The recent sentiment hasn't been entirely rosy. On Dec. 17, Jefferies analyst Kaumil Gajrawala downgraded Constellation Brands from Buy to Hold and slashed the price target from $170 to $154.

But here's where things get interesting for income-focused investors: Constellation currently offers an annual dividend yield of 2.96%, paying out $1.02 per share quarterly, or $4.08 annually. So if you're someone who likes the idea of regular dividend checks, how much would you actually need to invest to generate meaningful income?

To pocket $500 per month or $6,000 annually from dividends alone, you'd need an investment of approximately $202,939, which translates to around 1,471 shares. If your target is more modest at $100 per month or $1,200 per year, you'd need $40,560 or around 294 shares.

The math: Divide your desired annual income ($6,000 or $1,200) by the annual dividend payment ($4.08). So $6,000 / $4.08 = 1,471 shares (for $500 monthly), and $1,200 / $4.08 = 294 shares (for $100 monthly).

Keep in mind that dividend yields aren't static. They fluctuate as both the dividend payment and stock price change over time.

Understanding dividend yield: The yield is calculated by dividing the annual dividend payment by the current stock price.

Here's a practical example: If a stock pays an annual dividend of $2 and trades at $50, the dividend yield is 4% ($2/$50). But if that stock price climbs to $60, the yield drops to 3.33% ($2/$60). On the flip side, if the price falls to $40, the yield jumps to 5% ($2/$40).

The same principle applies to dividend payment changes. When a company increases its dividend while the stock price remains steady, the yield rises. When the dividend gets cut, the yield falls accordingly.

Price movement: Constellation Brands shares were trading up 0.26% at $138.31 at the time of publication on Friday.