How To Earn $500 A Month From Brady Stock Following Q4 Earnings

Author: Priya Nigam | September 06, 2023 08:30am

Brady Corp (NYSE:BRC) reported better-than-expected results for its fourth quarter.

The company reported sales growth of 6.8% Y/Y to $345.93 million, beating the consensus of $329.19 million. Adjusted EPS of $1.04 beat the consensus of $0.90.

The company's Board of Directors approved an increase in the annual dividend to shareholders from $0.92 to $0.94 per share, representing a 2.2% increase.

A quarterly dividend of $0.235 per share will be paid on October 31, 2023, to shareholders of record at the close of business on October 10, 2023.

With Brady reporting strong quarterly earnings, some investors may be eyeing potential gains from the company’s dividends. As of now, Brady has a dividend yield of 1.82%, which is a quarterly dividend amount of $0.23 a share ($0.92 a year).

To figure out how to earn $500 monthly from Brady dividends, we start with the yearly target of $6,000 ($500 x 12 months).

Next, we take this amount and divide it by Brady’s $0.92 dividend: $6,000 / $18.40 = 6,522 shares

So, an investor would need to own approximately $369,145 worth of Brady, or 6,522 shares to generate a monthly dividend income of $500.

Assuming a more conservative goal of $100 monthly ($1,200 annually), we do the same calculation: $1,200 / 18.40 = 1,304 shares, or $73,806 to generate a monthly dividend income of $100.

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Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.

The dividend yield is calculated by dividing the annual dividend payment by the current stock price. As the stock price changes, the dividend yield will also change.

For example, if a stock pays an annual dividend of $2 and its current price is $50, its dividend yield would be 4%. However, if the stock price increases to $60, the dividend yield would decrease to 3.33% ($2/$60).

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

Further, the dividend payment itself can also change over time, which can also impact the dividend yield. If a company increases its dividend payment, the dividend yield will increase even if the stock price remains the same. Similarly, if a company decreases its dividend payment, the dividend yield will decrease.

BRC Price Action: Shares of Brady jumped 11.4% to close at $56.60 on Tuesday.

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Posted In: BRC