Worthington Steel, Inc. (NYSE:WS) will release its fourth quarter earnings report after the closing bell on Wednesday, June 24.

Analysts expect the company to report quarterly earnings of 73 cents per share, down from $1.05 per share in the year-ago period. The consensus estimate for Worthington Steel’s quarterly revenue is $992 million. It reported $832.9 million last year, according to Benzinga Pro.

Ahead of quarterly earnings, Keybanc analyst Samuel McKinney, on June 2, maintained Worthington Steel with an Overweight rating and raised the price target from $38 to $46.

With the recent buzz around Worthington Steel, some investors may be eyeing potential gains from the company’s dividends too. As of now, Worthington Steel has an annual dividend yield of 1.61%, which is a quarterly dividend amount of 16 cents per share (64 cents 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 $372,750 or around 9,375 shares. For a more modest $100 per month or $1,200 per year, you would need $74,550 or around 1,875 shares.

To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($0.64 in this case). So, $6,000 / $0.64 = 9,375 ($500 per month), and $1,200 / $0.64 = 1,875 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.

WS Price Action: Shares of Worthington Steel fell 1.1% to close at $39.76 on Tuesday.

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