Analysts expect the company to report quarterly earnings at $1.83 per share, up from $1.68 per share in the year-ago period. Jabil projects quarterly revenue of $6.4 billion, compared to $6.77 billion a year earlier, according to data from Benzinga Pro.
On Feb. 24, Goldman Sachs analyst Mark Delaney maintained Jabil with a Buy and raised the price target from $160 to $179.
With the recent buzz around Jabil, some investors may be eyeing potential gains from the company’s dividends too. Currently, Jabil offers an annual dividend yield of 0.24%, a quarterly dividend amount of 8 cents per share (32 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 $2,542,875 or around 18,750 shares. For a more modest $100 per month or $1,200 per year, you would need $508,575 or around 3,750 shares.
To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend (32 cents in this case). So, $6,000 / $0.32 = 18,750 ($500 per month), and $1,200 / $0.32 = 3,750 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.
Price Action: Shares of Jabil fell 2% to close at $135.62 on Tuesday.
