The Williams Companies, Inc. (NYSE:WMB) will release earnings results for the first quarter, after the closing bell on Monday, May 5.
Analysts expect the Tulsa, Oklahoma-based company to report quarterly earnings at 55 cents per share, down from 59 cents per share in the year-ago period. Williams projects to report quarterly revenue at $2.94 billion, compared to $2.77 billion a year earlier, according to data from Benzinga Pro.
On April 29, Williams raised its quarterly dividend by 5.3% to 50 cents per share.
With the recent buzz around Williams, some investors may be eyeing potential gains from the company’s dividends too. As of now, Williams offers an annual dividend yield of 3.33%, which is a quarterly dividend amount of 50 cents per share ($2.00 a year).
So, how can investors exploit its dividend yield to pocket a regular $500 monthly?
To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $180,000 or around 3,000 shares. For a more modest $100 per month or $1,200 per year, you would need $36,000 or around 600 shares.
To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($2.00 in this case). So, $6,000 / $2.00 = 3,000 ($500 per month), and $1,200 / $2.00 = 600 shares ($100 per month).
View more earnings on WMB
Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.
How that works: The dividend yield is computed by dividing the annual dividend payment by the stock’s current price.
For example, if a stock pays an annual dividend of $2 and is currently priced at $50, the dividend yield would be 4% ($2/$50). However, if the stock price increases to $60, the dividend yield drops to 3.33% ($2/$60). Conversely, if the stock price falls to $40, the dividend yield rises to 5% ($2/$40).
Similarly, changes in the dividend payment can impact the yield. If a company increases its dividend, the yield will also increase, provided the stock price stays the same. Conversely, if the dividend payment decreases, so will the yield.
WMB Price Action: Shares of Williams gained 2% to close at $60.00 on Friday.
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Image: Logo courtesy of Williams Companies
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This article How To Earn $500 A Month From Williams Companies Stock Ahead Of Q1 Earnings originally appeared on Benzinga.com
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