UniFirst Corporation (NYSE: UNF) is set to announce its first-quarter financial results on Wednesday, January 8, 2025, before the market opens. Analysts are anticipating the Massachusetts-based company to reveal quarterly earnings of $2.22 per share, a decrease from the $2.37 per share reported in the same period the previous year. UniFirst is expected to disclose quarterly revenue of $606.95 million, surpassing the $593.52 million figure from the corresponding quarter in the prior year, according to data sourced from Benzinga Pro.
On October 29, UniFirst disclosed an increase in its quarterly cash dividend, raising it from 33 cents to 35 cents per share. This move has garnered significant attention from investors looking to potentially benefit from the company’s dividend payments. Presently, UniFirst offers an annual dividend yield of 0.81%, equating to a quarterly dividend amount of 35 cents per share ($1.40 annually).
Investors interested in generating a consistent monthly income of $500 through dividends could consider leveraging UniFirst’s dividend yield. To achieve a monthly income of $500 or $6,000 annually solely from dividends, an investment of approximately $740,578 or roughly 4,286 shares would be required. For a more modest monthly income of $100 or $1,200 annually, an investment of $148,081 or approximately 857 shares would suffice.
To calculate the number of shares needed, divide the desired annual income ($6,000 or $1,200) by the dividend amount ($1.40 in this case). Accordingly, for a $6,000 monthly income goal, the calculation would be $6,000 / $1.40 = 4,286 shares, and for a $1,200 monthly goal, it would be $1,200 / $1.40 = 857 shares.
It is important to note that the dividend yield is subject to fluctuations as both the dividend payment and the stock price change over time. The dividend yield is calculated by dividing the annual dividend payment by the stock’s current price. For instance, if a stock has an annual dividend of $2 and is priced at $50, the dividend yield would be 4% ($2/$50). However, if the stock price rises to $60, the dividend yield would decline to 3.33% ($2/$60). Conversely, if the stock price falls to $40, the dividend yield would increase to 5% ($2/$40).
Changes in the dividend payment also influence the yield. If a company raises its dividend, the yield will rise as well, assuming the stock price remains stable. Conversely, a reduction in the dividend payment would lead to a decrease in the yield.
UniFirst Corporation’s shares experienced a 2.2% decline, closing at $172.79 on Friday.
