Accenture plc (NYSE:ACN) will release earnings results for the third quarter, before the opening bell on Friday, June 20.
Analysts expect the Dublin-based company to report quarterly earnings at $3.32 per share, up from $3.13 per share in the year-ago period. According to data from Benzinga Pro, Accenture projects quarterly revenue at $17.3 billion, compared to $16.47 billion a year earlier.
On May 8, Accenture announced plans to acquire Japan-based Yumemi to accelerate the launch of innovative digital products and services.
With the recent buzz around Accenture, some investors may be eyeing potential gains from the company’s dividends too. Currently, Accenture offers an annual dividend yield of 1.90% — a quarterly dividend amount of $1.48 per share ($5.92 a year).
To figure out how to earn $500 monthly from Accenture, we start with the yearly target of $6,000 ($500 x 12 months).
Next, we take this amount and divide it by Accenture’s $5.92 dividend: $6,000 / 5.92 = 5,769 shares.
So, an investor would need to own approximately $316,398 worth of Accenture, or 1,014 shares to generate a monthly dividend income of $500.
Assuming a more conservative goal of $100 monthly ($1,200 annually), we do the same calculation: $1,200 / $5.92 = 203 shares, or $63,342 to generate a monthly dividend income of $100.
View more earnings on ACN
Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both 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 example, 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% ($2/$60).
Conversely, if the stock price decreases to $40, the dividend yield would increase to 5% ($2/$40).
Further, the dividend payment itself can also change over time, which can also impact the dividend yield. If a company increases its dividend payment, the dividend yield will increase even if the stock price remains the same. Similarly, if a company decreases its dividend payment, the dividend yield will decrease.
ACN Price Action: Shares of Accenture fell by 0.7% to close at $312.03 on Tuesday.
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