American retail giant Walmart Inc. (NYSE:WMT) action farm at $152.67 at the end of the December 14 trading session. The company has a market capitalization of $411 billion. Compared to the stock’s previous 52-week price range of $136.09 to $169.94, the current price is just below half price.
Walmart’s dividend yield is 1.46% and the payment for financial year 2023 is $2.28 per share. The annualized dividend is payable in four equal installments of $0.57 per share each quarter. The company paid $4.61 billion in the first nine months of 2023. The final dividend record date was December 8 and is payable on January 2.
How can you make $1,000 a month as a Walmart investor?
If you want to earn $1,000 per month – $12,000 per year – from Walmart dividends, the value of your investment needs to be approximately $821,918, or 5,384 shares at $152.67 each. If you want to earn $200 per month, the value of your investment drops to $164,384 or 1,077 shares.
How to calculate the value of your investment using dividend yields: When estimating the value of your investment, two key variables play a crucial role: desired annual income — $12,000 or $2,400 — and dividend yield. You can calculate the dividend yield by dividing the annual dividend payments by the market price of the stock.
So, $12,000 / 0.0146 = $821,918 to generate an income of $1,000 per month, and $2,400 / 0.0146 = $164,384 for $200 per month.
Important note: The dividend yield may change over time. This is due to the constant changes in stock prices and the company’s dividend policies.
For example, suppose a stock that pays $2 in annual dividends is priced at $50. Its dividend yield would be $2/$50 = 4%. If the stock price rises to $60, the dividend yield drops to 3.33% ($2/$60). A drop in the stock price to $40 will have the opposite effect and increase the dividend yield to 5% ($2/$40).
Just as a change in a stock’s price affects yield, changes in dividend payouts can also impact yield. Assuming the stock price remains the same, the dividend yield will increase when the company increases the dividend value and vice versa.
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