FactSet Research Systems Inc. (NYSE:FDS) will release its third-quarter earnings report before the opening bell on Wednesday, July 1.

Analysts expect the company to report quarterly earnings of $4.45 per share, up from $4.27 per share in the year-ago period. The consensus estimate for FactSet Research’s quarterly revenue is $617.59 million. It reported $585.52 million last year, according to Benzinga Pro.

On May 27, RBC Capital analyst Ashish Sabadra maintained FactSet Research at Sector Perform and lowered the price target from $243 to $240.

With the recent buzz around FactSet Research, some investors may be eyeing potential gains from the company’s dividends. Currently, the company has an annual dividend yield of 2.00%, with a quarterly dividend of $1.16 per share ($4.64 per year).  

So, how can investors use its dividend yield to pocket a regular $500 per month?

To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $299,640 or around 1,293 shares. For a more modest $100 per month or $1,200 per year, you would need $60,021 or around 259 shares.

To Calculate

Divide the desired annual income ($6,000 or $1,200) by the dividend ($4.64 in this case). So, $6,000 / $4.64 = 1,293 ($500 per month), and $1,200 / $4.64 = 259 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.

FDS Price Action: Shares of FactSet Research rose 11% to close at $231.74 on Friday.

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