Thor Industries, Inc. (THO) is gearing up to unveil its earnings results for the fiscal 2024 fourth quarter before the market opens on Tuesday, September 24th. Wall Street analysts are anticipating strong performance, projecting earnings of $4.83 per share, a significant increase from the $4.55 per share reported in the same period last year. The company is also expected to post revenue of $21.99 billion for the quarter, according to data from Benzinga Pro.
With the recent buzz surrounding Thor Industries, some investors are eyeing potential gains from the company’s dividends. Thor Industries currently offers a generous annual dividend yield of 1.84%, translating to a quarterly dividend payment of 48 cents per share, or $1.92 annually. This raises an intriguing question: How can investors leverage this dividend yield to consistently earn a passive income of $500 per month?
To achieve a monthly dividend income of $500, or $6,000 annually, you would need to invest approximately $326,875, which is equivalent to owning around 3,125 shares of Thor Industries. For a more modest goal of $100 per month, or $1,200 per year, a smaller investment of $65,375 or around 625 shares would be required.
The calculation is straightforward: divide your desired annual income ($6,000 or $1,200) by the annual dividend ($1.92 in this case). So, $6,000 / $1.92 = 3,125 ($500 per month), and $1,200 / $1.92 = 625 shares ($100 per month).
It’s important to note that dividend yields are dynamic and can fluctuate over time due to changes in both the dividend payment and the stock price. This is how dividend yield works: The yield is calculated by dividing the annual dividend payment by the current stock price. For example, if a stock pays an annual dividend of $2 and is currently trading 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 also impact the yield. If a company decides to increase its dividend, the yield will also increase, assuming the stock price remains constant. Conversely, if the dividend payment is reduced, the yield will decrease.
Shares of Thor Industries closed at $104.60 on Wednesday, down 0.6%. As you consider investing in Thor Industries for its dividend potential, keep in mind that dividend yields are subject to change, and the calculations provided are based on current data. It’s always wise to conduct thorough research and consult with a financial advisor before making any investment decisions.
