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Fastenal Company (NASDAQ:FAST) will publish its financial results for the fourth quarter, before the opening bell, Friday January 17, 2025.
Analysts expect the Winona, Minn.-based company to report quarterly earnings of 48 cents per share, up from 46 cents per share in the year-ago period. Fastenal expects quarterly revenue of $1.84 billion, compared with $1.76 billion a year earlier, according to data from Benzinga Pro.
On December 11, Stifel analyst Brian Butler downgraded Fastenal from Buy to Hold and kept the price target at $86.
With the recent buzz surrounding Fastenal, some investors may also be looking at the company’s potential dividend earnings. Fastenal offers an annual dividend yield of 2.18%, which is a quarterly dividend of 39 cents per share ($1.56 annually).
So how can investors leverage their dividend yield to pocket $500 a month?
To earn $500 a month or $6,000 a year from dividends alone, you would need an investment of approximately $275,489 or about 3,846 shares. For a more modest amount of $100 a month or $1,200 a year, you would need $55,083 or about 769 shares.
To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($1.56 in this case). So $6,000 / $1.56 = 3,846 ($500 per month) and $1,200 / $1.56 = 769 shares ($100 per month).
Note that the dividend yield may change continuously as the dividend payout and stock price fluctuate over time.
How this works: The dividend yield is calculated by dividing the annual dividend payment by the current share price.
For example, if a stock pays an annual dividend of $2 and is currently priced at $50, the dividend yield would be 4% ($2/$50). However, if the stock price rises to $60, the dividend yield drops to 3.33% ($2/$60). Conversely, if the stock price falls to $40, the dividend yield increases to 5% ($2/$40).
Similarly, changes in dividend payout can affect performance. If a company increases its dividend, the yield will also increase, as long as the share price remains the same. Conversely, if the dividend payout decreases, so will the yield.
Price action: Shares of Fastenal fell 1.8% to close at $71.63 on Friday.
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