J.B. Hunt Transport Services Inc. (JBHT) is gearing up to release its fourth-quarter earnings after the closing bell on Thursday, Jan. 15, and the numbers tell an interesting story for dividend-focused investors.
Analysts are anticipating earnings of $1.81 per share for the quarter, which would represent a solid jump from the $1.53 reported in the same period last year. Revenue projections come in at $3.12 billion, slightly below the $3.15 billion posted a year ago.
On Wednesday, Stifel analyst J. Bruce Chan maintained a Hold rating on J.B. Hunt but bumped up the price target from $172 to $189, suggesting some optimism about the trucking company's trajectory.
With earnings on the horizon, let's talk about what it actually takes to generate meaningful dividend income from J.B. Hunt. The company currently offers an annual dividend yield of 0.86%, paying out 44 cents per share quarterly (that's $1.76 annually).
Here's the math if you're targeting $500 in monthly dividend income. First, multiply that monthly goal by 12 to get your annual target: $6,000. Then divide that annual target by J.B. Hunt's $1.76 annual dividend per share. The result? You'd need approximately 3,409 shares.
At the current stock price, owning those 3,409 shares would require an investment of roughly $701,606 to generate $500 in monthly dividend income.
If you're working with a smaller budget, let's say targeting $100 monthly ($1,200 annually), the calculation works the same way: $1,200 divided by $1.76 equals about 682 shares, or approximately $140,362 worth of stock.
One important caveat: dividend yields aren't static. They move around as both the stock price and dividend payments change over time.
The dividend yield is simply the annual dividend payment divided by the current stock price. When the stock price climbs, the yield drops (assuming the dividend stays constant). When the price falls, the yield increases.
For example, imagine a stock paying a $2 annual dividend trading at $50. That's a 4% yield. If the stock price jumps to $60, the yield drops to 3.33% ($2 divided by $60). If it falls to $40, the yield climbs to 5% ($2 divided by $40).
The dividend payment itself can also shift, affecting the yield even if the stock price doesn't budge. Companies that increase their dividends boost the yield, while those that cut dividends lower it.
JBHT Price Action: Shares of J.B. Hunt Transport edged up 0.3% to close at $205.81 on Wednesday.




