Sunoco LP (SUN) shares ended Friday’s trading session slightly higher, riding a wave of positive sentiment. The company’s strong performance has caught the attention of analysts like Jeremy Tonet at JP Morgan, who maintained an Overweight rating and raised the price target from $61 to $63. Sunoco’s recent earnings report, released on August 7th, revealed a quarterly profit of $3.85 per share, exceeding analyst expectations of $1.30. The company also reported strong sales of $6.174 billion, surpassing the projected $5.822 billion.
This impressive performance has fueled interest in Sunoco’s dividends, which currently boast a yield of 6.55%. This translates to a quarterly dividend of 87.56 cents per share, amounting to $3.502 annually. For investors seeking passive income streams, Sunoco’s dividends could be an attractive option.
Let’s explore how many shares you would need to own to generate a specific monthly dividend income. To reach a monthly target of $500, you would need to generate $6,000 annually ($500 x 12 months). Dividing this amount by Sunoco’s annual dividend of $3.502, we arrive at 1,713 shares. This equates to a total investment of approximately $91,646.
For a more conservative target of $100 per month, or $1,200 annually, the calculation is similar. Dividing $1,200 by $3.502, we get 343 shares, which translates to an investment of around $18,351.
It’s crucial to remember that dividend yield can fluctuate over time. This is because both the dividend payment and the stock price are subject to change. The dividend yield is calculated by dividing the annual dividend payment by the current stock price. If the stock price increases, the dividend yield will decrease, and vice versa. Similarly, if a company decides to adjust its dividend payment, either increasing or decreasing it, the dividend yield will be affected.
Sunoco’s shares closed at $53.50 on Friday, up by 0.4%. As you consider your investment strategy, keep in mind the dynamics of dividend yield and how it can impact your overall returns. Remember, it’s essential to conduct thorough research and consult with a financial advisor before making any investment decisions.
