Steel Dynamics, Inc. (NASDAQ:STLD) will release earnings results for the third quarter, after the closing bell on Monday, Oct. 20.

Analysts expect the company to report quarterly earnings at $2.63 per share, up from $2.05 per share in the year-ago period. Steel Dynamics is likely to post quarterly revenue of $4.76 billion. Last year, it earned $4.34 billion, according to data from Benzinga Pro.

With the recent buzz around Steel Dynamics, some investors may be eyeing potential gains from the company's dividends too. Steel Dynamics currently offers an annual dividend yield of 1.40%. That’s a quarterly dividend amount of 50 cents per share ($2.00 a year).

To figure out how to earn $500 monthly from Steel Dynamics, we start with the yearly target of $6,000 ($500 x 12 months).

Next, we take this amount and divide it by Steel Dynamics' $2.00 dividend: $6,000 / $2.00 = 3,000 shares.

So, an investor would need to own approximately $427,950 worth of Steel Dynamics, or 3,000 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 / $2.00 = 600 shares, or $85,590 to generate a monthly dividend income of $100.

Note that dividend yield can change on a rolling basis; 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 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.

STLD Price Action: Shares of Steel Dynamics fell by 2.3% to close at $142.65 on Thursday.

On Monday, JPMorgan analyst Bill Peterson maintained Steel Dynamics with a Neutral and raised the price target from $150 to $160.

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