How To Earn $500 A Month From MSC Industrial Direct Stock Ahead Of Q3 Earnings

MSC Industrial Direct Co., Inc. (NYSE: MSM ) will release its third-quarter earnings report before the opening bell on Wednesday, July 1.

Analysts expect the company to report quarterly earnings of $1.26 per share, up from $1.08 per share in the year-ago period.

The consensus estimate for MSC Industrial Direct’s quarterly revenue is $1.03 billion.

It reported $971.14 million last year, according to Pro.

DA Davidson analyst Chris Dankert, on June 16, initiated coverage on MSC Industrial Direct with a Buy rating and announced a price target of $145.

With the recent buzz around MSC Industrial Direct, some investors may be eyeing potential gains from the company’s dividends too.

As of now, MSC Industrial Direct has an annual dividend yield of 2.98%, which is a quarterly dividend amount of 87 cents per share ($3.48 a year).

So, how can investors use its dividend yield to pocket a regular $500 per month? To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $201,139 or around 1,724 shares.

For a more modest $100 per month or $1,200 per year, you would need $40,251 or around 345 shares.

To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($3.48 in this case).

So, $6,000 / $3.48 = 1,724 ($500 per month), and $1,200 / $3.48 = 345 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.

MSM Price Action: Shares of MSC Industrial Direct fell 1.3% to close at $116.67 on Monday.

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