How to Earn $500 a Month from PriceSmart Stock Before Q2 Earnings Release

PriceSmart Inc.(NASDAQ Resonance Symbol: PSMT) Scheduled to Release Second Quarter Financial Results on April 9, 2024 After the Close of Business.

Analysts expect the San Diego, California-based company to report second-quarter earnings of $1.25 per share, up from $1.02 a year ago. PriceSmart is expected to report revenue of $1.28 billion for the quarter, according to Benzinga Pro.

On February 2, PriceSmart raised its annual dividend to $1.16 per share from 92 cents.

With all the recent buzz surrounding PriceSmart, some investors may be eyeing the potential benefits of the company's dividend. To date, PriceSmart has a dividend yield of 1.39% and an annual dividend of $1.16 per share (29 cents per quarter).

To calculate how to earn $500 per month from PriceSmart, we start with an annual goal of $6,000 ($500 x 12 months).

We then divide this amount by PriceSmart's $1.16 dividend: $6,000/$1.16 = 5,172 shares.

As a result, investors would need to hold approximately $432,017 worth of PriceSmart shares, or 5,172 shares, in order to receive the $500 monthly dividend income.

Assuming a monthly goal of $100 ($1,200 per year), we do the same math: $1,200 / $1.16 = 1,034 shares, or $86,370, to get $100 per month in dividend income.

View more earnings from PSMT

Please also read: Wall Street's Most Accurate Analysts See 3 Consumer Discretionary Stocks With Dividend Yields Above 41 TP3T

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

Dividend yield is calculated by dividing the dividends paid each year by the stock price where it was paid. As the stock price changes, the dividend yield also changes.

For example, if a stock pays a dividend of $2 per year and its price is $50, the dividend yield is 4%, but if the stock price rises to $60, the dividend yield drops to 3.33% ($2/$60).

Conversely, if the stock price falls to $40, the dividend yield will increase to 5% ($2/$40).

In addition, dividend payments themselves change over time, which also affects the dividend yield. If a company increases its dividend payment, the dividend yield will increase even if the share price remains unchanged. Similarly, if a company decreases its dividend payment, the dividend yield will decrease.

PSMT price trend:Shares of PriceSmart stock traded up 0.7% on Monday, closing at $83.53.

Read more Top 4 Tech & Telecom Stocks That Could Crash in Q2

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This article, "How to Earn $500 a Month from PriceSmart Stock Before Q2 Earnings Releases," originally appeared on Benzinga.com.

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