Weyerhaeuser Company (WY) is gearing up to release its third-quarter earnings after the market closes on Thursday, October 24th. While analysts project a decline in both earnings and revenue compared to the previous year, the company continues to be a beacon for income-seeking investors, thanks to its attractive dividend yield.
Analysts anticipate Weyerhaeuser to report earnings of 1 cent per share for the third quarter, a significant drop from the 33 cents per share recorded in the same period last year. Revenue is expected to come in at $1.68 billion, down from $2.02 billion a year earlier.
Despite the anticipated earnings dip, Weyerhaeuser remains an attractive investment for dividend-focused investors. Currently, the company boasts an annual dividend yield of 2.51%, translating to a quarterly dividend payment of 20 cents per share (80 cents annually).
For those looking to generate a passive income stream from Weyerhaeuser dividends, the required investment can be calculated based on your desired monthly income. To earn $500 per month, you would need to target a yearly income of $6,000. Dividing this amount by the annual dividend of $0.80 per share suggests an investment of 7,500 shares, which equates to approximately $238,875 based on the current stock price.
A more conservative goal of $100 monthly dividend income would require a yearly income of $1,200. Applying the same calculation, you would need to own 1,500 shares, or approximately $47,775 worth of Weyerhaeuser stock.
It’s important to remember that dividend yields are not static and can fluctuate over time. Both the dividend payment and the stock price are subject to change, impacting the dividend yield.
For instance, if the stock price rises, the dividend yield will decrease, and vice versa. Similarly, if the company decides to adjust its dividend payments, the yield will be affected accordingly. Investors should always stay informed about the latest developments concerning Weyerhaeuser’s dividends to make informed investment decisions.
On Wednesday, shares of Weyerhaeuser closed at $31.85, gaining 0.6% for the day. The upcoming earnings release will likely shed light on the company’s future prospects and provide further insight into its dividend strategy.