How To Earn $500 A Month From Walmart Stock Ahead Of Q1 Earnings

KEY POINTS
A more conservative goal of $100 monthly dividend income would require owning 1,446 shares of Walmart.
An investor would need to own $432,728 worth of Walmart to generate a monthly dividend income of $500.

Walmart is expected to release earnings results for its first quarter, before the opening bell on Thursday.

Analysts expect the company to report quarterly earnings at 52 cents per share, up from 49 cents per share in the year-ago period. Walmart is projected to post revenue of $159.52 billion.

Walmart is reportedly set to lay off hundreds of corporate employees and relocate others to its main corporate hubs.

With the recent buzz around Walmart, some investors may be eyeing potential gains from the company's dividends too. As of now, Walmart offers an annual dividend yield of 1.39%, which is a quarterly dividend amount of 20.75 cents per share (83 cents 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 $432,728 or around 7,229 shares. For a more modest $100 per month or $1,200 per year, you would need $86,558 or around 1,446 shares.

To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($0.83 in this case). So, $6,000 / $0.83 = 7,229 ($500 per month), and $1,200 / $0.83 = 1,446 shares ($100 per month).

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.