Analysts expect the company to report quarterly earnings at $1.95 per share, down from $2.34 per share in the year-ago period. Casey’s projects quarterly revenue of $3.95 billion, compared to $3.6 billion a year earlier, according to data from Benzinga Pro.
On April 11, Keybanc analyst Bradley Thomas initiated coverage of Casey’s with an Overweight rating and announced a price target of $500.
With the recent buzz around Casey’s, some investors may be eyeing potential gains from the company’s dividends too. As of now, Casey’s offers an annual dividend yield of 0.45%, which is a quarterly dividend amount of 50 per share ($2.00 a year).
To figure out how to earn $500 monthly from Casey’s, we start with the yearly target of $6,000 ($500 x 12 months).
Next, we take this amount and divide it by Casey’s $2.00 dividend: $6,000 / 2.00 = 3,000 shares.
So, an investor would need to own approximately $1,337,070 worth of Casey’s, or 3,000 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 / $2.00 = 600 shares, or $267,414 to generate a monthly dividend income of $100.
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.
CASY Price Action: Shares of Casey’s fell by 0.6% to close at $445.69 on Thursday.
