How to Earn $500 a Month from Campbell's Stock Ahead of Q3 Earnings

The Campbell Soup Company (CPB) has emerged as a compelling income-generating opportunity for investors seeking steady dividends, even as its stock price faces near-term headwinds. With a dividend yield of 4.45%—the highest in over a decade—the stock offers a rare chance to lock in a robust monthly payout. But how much should you invest, and how should you time your entry ahead of the critical Q3 earnings report? Let's break it down.

The Dividend Play: Calculating Your $500/Month Stake

To generate $500 a month in dividends from CPB stock, you need to consider its current yield and price. As of May 2025, CPB's dividend yield stands at 4.45%, with an annual dividend of $1.56 per share. This translates to a monthly dividend of $0.13 per share ($1.56 ÷ 12).

To reach $500/month, you'd need 3,846 shares ($500 ÷ $0.13). At the current stock price of $34.17, this requires an initial investment of $131,200 ($34.17 × 3,846). While this is a substantial sum, CPB's high yield and strategic positioning ahead of Q3 earnings make it worth considering for income-focused portfolios.

Price Action: A Bearish Near-Term Outlook, but Strategic Entry Points Ahead

CPB's stock is in a technical downtrend, driven by concerns over rising input costs and stagnant earnings growth. Analysts project the price to dip to $31.70 by late June, a -6.19% decline from its current $34.17 (see chart below). The 50-day and 200-day moving averages (MA) are both above the current price, signaling further downside pressure.

However, this presents an opportunity. If the stock drops to $31.70 before the Q3 earnings release, the required investment to achieve $500/month would fall to $121,600 ($31.70 × 3,846). This $9,600 reduction makes the entry more attractive, especially if earnings deliver a surprise.

Q3 Earnings: The Catalyst for a Potential Turnaround

CPB's Q3 earnings, scheduled for late July or early August (exact date pending), will be pivotal. Management has been reshaping the portfolio—shifting toward snacks (now 50% of revenue) and reducing reliance on soup (down to 28%)—to combat declining sales of traditional products. A strong earnings report could validate these moves, sparking a rebound in the stock.

Analysts expect a 5–7% revenue growth for the quarter, driven by price hikes and snack sales. If realized, this could push the stock back toward its 50-day MA ($36.94), boosting both capital gains and dividend yields.

Risks to Consider: Yield Volatility and Earnings Misses

• Dividend Sustainability: CPB's payout ratio of 78.5% leaves little room for margin erosion. Rising labor and logistics costs could pressure earnings, forcing a dividend cut.
• Earnings Disappointment: If Q3 results fall short of expectations, the stock could drop further, increasing the breakeven price for dividend investors.
• Sector Competition: Peers like Kraft Heinz (7.40% yield) and Conagra (6.18%) offer higher yields, making CPB's stock vulnerable to investor rotation.

The Strategic Play: Time Your Entry, Hedge Your Risks

1. Wait for the Dip: Hold off on buying until the stock nears the projected $31.70 low in June. This reduces your initial outlay and improves your risk-reward ratio.
2. Ladder Your Positions: Split your investment into two tranches: buy half now at $34.17 and reserve the rest for the June low.
3. Monitor Earnings Sentiment: Track analyst revisions and sentiment shifts in the weeks before the earnings release. Positive previews could trigger a pre-announcement rally.
4. Hedge with Put Options: Consider buying put options to protect against a post-earnings drop, especially if you're invested at higher prices.

Final Call: A High-Yield Opportunity with a Safety Net

CPB's 4.45% dividend yield is a rare find in today's market, offering a $500/month payout for those willing to commit capital. While near-term risks exist, the stock's potential rebound after Q3 earnings—and its structural shift toward higher-margin snacks—justifies a strategic position.

Act now: Use the next few weeks to position yourself ahead of the earnings catalyst. A disciplined entry at $31.70 or below could lock in a solid income stream with room for upside.

The clock is ticking. As the earnings date approaches, so does the window to secure this high-yield opportunity.

This analysis assumes no changes to CPB's dividend policy and relies on publicly available data as of May 2025. Past performance does not guarantee future results.