DICK’S Sporting Goods, Inc. (NYSE:DKS) will release earnings results for the first quarter, before the opening bell on Wednesday, May 28.
Analysts expect the company to report quarterly earnings of $4.33 per share and quarterly revenue of $3.6 billion, according to data from Benzinga Pro.
On May 15, Foot Locker, Inc. (NYSE:FL) disclosed a definitive deal to be acquired by Dick’s Sporting Goods. The deal values Foot Locker’s equity at around $2.4 billion and its enterprise at about $2.5 billion.
With the recent buzz around Dick’s Sporting Goods, some investors may be eyeing potential gains from the company’s dividends too. As of now, Dick’s Sporting Goods offers an annual dividend yield of 2.81%, which is a quarterly dividend amount of $1.21 per share ($4.85 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 $213,259 or around 1,237 shares. For a more modest $100 per month or $1,200 per year, you would need $42,583 or around 247 shares.
To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($2.64 in this case). So, $6,000 / $4.85 = 1,237 ($500 per month), and $1,200 / $4.85 = 247 shares ($100 per month).
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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.
DKS Price Action: Shares of Dick’s Sporting Goods fell 2% to close at $172.40 on Thursday.
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This article How To Earn $500 A Month From Dick’s Sporting Goods Stock Ahead Of Q1 Earnings originally appeared on Benzinga.com
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