Consolidated Water Co. Ltd. (CWCO), a Cayman Islands-based company, recently declared a quarterly cash dividend of 9.5 cents per share for the third quarter of 2024. The company is set to release its second-quarter earnings results on Wednesday, August 14, after the closing bell. Analysts anticipate the company to report quarterly earnings of 34 cents per share, a decline from 46 cents per share in the same period last year. Consolidated Water is also projected to post revenue of $37.3 million, compared to $44.24 million in the prior year, according to data from Benzinga Pro.
The recent news surrounding Consolidated Water has sparked interest among investors, particularly regarding the potential gains from dividends. Currently, Consolidated Water boasts a dividend yield of 1.45%, which translates to a quarterly dividend amount of 9.5 cents per share (38 cents annually). To determine the number of shares required to generate $500 monthly in dividend income, we start with an annual target of $6,000 ($500 x 12 months). Dividing this target by Consolidated Water’s $0.38 dividend yields 15,789 shares. Therefore, an investor would need to own approximately 15,789 shares, worth around $415,093, to generate a monthly dividend income of $500.
For a more conservative goal of $100 monthly ($1,200 annually), the calculation remains similar: $1,200 / $0.38 = 3,158 shares, equivalent to $83,024 to generate a monthly dividend income of $100.
It’s crucial to note that the dividend yield is subject to change as both the dividend payment and the stock price fluctuate over time. The dividend yield is calculated by dividing the annual dividend payment by the current stock price. As the stock price changes, the dividend yield will also change. For instance, if a stock pays an annual dividend of $2 and its current price is $50, its dividend yield would be 4%. However, if the stock price increases to $60, the dividend yield would decrease to 3.33%. Conversely, if the stock price decreases to $40, the dividend yield would increase to 5%.
Furthermore, the dividend payment itself can be adjusted over time, impacting the dividend yield. If a company increases its dividend payment, the dividend yield will rise even if the stock price remains constant. Similarly, if a company reduces its dividend payment, the dividend yield will decline.
On Monday, shares of Consolidated Water closed down 1.2% at $26.29.
