How To Earn $500 A Month From Landstar System Stock Ahead Of Q1 Earnings

Landstar System, Inc. LSTR will release earnings results for the first quarter, before the opening bell on Tuesday, May 13.

Analysts expect the Jacksonville, Florida-based company to report quarterly earnings at 94 cents per share, down from $1.32 per share in the year-ago period. According to data from Benzinga Pro, Landstar System projects quarterly revenue at $1.13 billion, compared to $1.17 billion a year earlier.

On April 24, Truist Securities analyst Lucas Servera maintained Landstar System with a Hold and lowered the price target from $150 to $135.

With the recent buzz around Landstar System, some investors may be eyeing potential gains from the company's dividends too. Currently, Landstar System offers an annual dividend yield of 1.06% — a quarterly dividend of 36 cents per share. That’s $1.44 a year.  

So, how can investors exploit its dividend yield to pocket a regular $500 monthly?

To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $564,879 or around 4,167 shares. For a more modest $100 per month or $1,200 per year, you would need $112,921 or around 833 shares.

To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($1.44 in this case). So, $6,000 / $1.44 = 4,167 ($500 per month), and $1,200 / $1.44 = 833 shares ($100 per month).

Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.

How that works: The dividend yield is computed by dividing the annual dividend payment by the stock’s current 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 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 impact the yield. If a company increases its dividend, the yield will also increase, provided the stock price stays the same. Conversely, if the dividend payment decreases, so will the yield.

LSTR Price Action: Shares of Landstar System fell 0.4% to close at $135.56 on Friday.

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