The first quarter earnings of Costco Wholesale Corporation (NASDAQ: COST) surpassed initial projections, and the company also declared a $15 per share special cash dividend last week.
First-quarter net sales for Costco increased 6.1% annually. In contrast to the consensus estimate of $57.72 billion, the organization disclosed quarterly revenues amounting to $57.8 billion. Benzinga Pro reports that the retailer disclosed adjusted quarterly earnings amounting to $3.48 per share, surpassing the $3.42 per share forecast put forth by analysts.
Following the disclosure of the earnings report, a number of analysts (UBS, Citigroup, Stifel, Truist Securities, DA Davidson, and BMO Capital) increased their price targets on the stock.
In the wake of recent positive earnings reports concerning Costco, certain investors might be considering the possibility of profiting from the organization’s dividends. At present, Costco’s dividend yield stands at 0.60%, equivalent to $1.02 per share distributed quarterly (equivalent to $4.08 per annum).
Commencing the process of calculating how to generate $500 per month from Costco dividends requires setting an annual goal of $6,000 ($500 x 12 months).
Then, we divide this sum by the Costco dividend of $4.08: $6,000 divided by $4.08 equals 1,471 shares.
For an investor to receive a monthly dividend income of $500, they would need to possess 1,471 shares of Costco, which is equivalent to an estimated value of $996,956.
Applying a more cautious target of $100 per month ($1,200 per year), the corresponding computation is as follows: $1,200 divided by $4.08 equals 294 shares, or $199,256, in order to yield a monthly dividend income of $100.
