How to Earn $500 a Month from Conagra Brands Stock with Great Financial Results

Conigra Brands, Inc. (ConAgra)Brands Inc (NYSE: CAG) announced better-than-expected third-quarter financial results on Thursday.

Some investors may be eyeing potential gains from the company's dividend after this news broke.

Currently, Conagra Brands, which owns the Reddi-wip, Healthy Choice and Marie Callender's brands, pays an annual dividend yield of 4.57%. The quarterly dividend per share is 35 cents ($1.40 a year).

So, how can investors take advantage of its dividend yield and earn $500 per month on a regular basis?

To earn $500 per month or $6,000 per year in dividends, you would need to invest approximately $131,323 or about 4,286 shares. To earn $100 per month or $1,200 per year, you would need $26,258 or about 857 shares.

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Calculation method Divide the dividend (in this case $1.40) by the desired annual income ($6,000 or $1,200). Therefore, $6,000/$1.40 = 4,286 shares ($500 per month) and $1,200/$1.40 = 857 shares ($100 per month).

Note that the dividend yield rolls over as dividend payments and stock prices fluctuate.

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How to Calculate Dividend yield is calculated by dividing the annual dividend payment by the price of the stock where it was paid.

For example, if a stock pays an annual dividend of $2 and is currently trading at $50, the dividend yield is 4% ($2/$50). However, if the stock price rises to $60, the dividend yield drops to 3.33% ($2/$60). On the contrary, if the stock price falls to $40, the dividend yield rises to 5% ($2/$40).

Similarly, changes in dividend payments affect the yield. If a company increases its dividend, the yield will increase while the share price remains unchanged. Conversely, if dividend payments decrease, the yield will fall.

CAG Price Trend:Shares of Conagra Brands rose 5.4% to close at $30.64 on Thursday.

The Chicago-based company reported a 1.7% year-over-year sales decline to $3.03 billion in the third quarter of FY24, beating analysts' consensus estimates of $3.01 billion.

Adjusted EPS of 69 cents beat the consensus estimate of 65 cents, according to Benzinga Pro.

Conagra reiterated that its FY24 organic net sales will decline by $1% to $2% compared to FY2023. the company expects adjusted EPS to remain in the range of $2.60 to $2.65, compared to expectations of $2.60. the company expects adjusted EPS to remain in the range of $2.60 to $2.65 compared to expectations of $2.60.

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This article originally appeared on Benzinga.com How to Earn $500 a Month from ConAgra Brands Stock After Optimistic Earnings.

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