Dick's Sporting Goods, Inc. (NYSE:DKS) is projected to post revenue of $3.44 billion when it releases second-quarter, earnings on Wednesday, Sept. 4, according to data from Benzinga Pro.
With the recent buzz around Dick's, some investors may be eyeing potential gains from the company's dividends. As of now, the company has a dividend yield of 1.87%. That's a quarterly dividend amount of $1.10 a share ($4.40 a year).
To figure out how to earn $500 monthly from Dick's, we start with the yearly target of $6,000 ($500 x 12 months).
Next, we take this amount and divide it by Dick's $4.40 dividend: $6,000 / $4.40 = 1,364 shares
So, an investor would need to own approximately $320,622 worth of Dick's, or 1,364 shares to generate a monthly dividend income of $500.
Assuming a more conservative goal of $100 monthly ($1,200 annually), we do the same calculation: $1,200 / $4.40 = 273 shares, or $64,171 to generate a monthly dividend income of $100.
Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.
The dividend yield is calculated by dividing the annual dividend payment by the current stock price. As the stock price changes, the dividend yield will also change.
For example, if a stock pays an annual dividend of $2 and its current price is $50, its dividend yield would be 4%. However, if the stock price increases to $60, the dividend yield would decrease to 3.33% ($2/$60).
Conversely, if the stock price decreases to $40, the dividend yield would increase to 5% ($2/$40).
Further, the dividend payment itself can also change over time, which can also impact the dividend yield. If a company increases its dividend payment, the dividend yield will increase even if the stock price remains the same. Similarly, if a company decreases its dividend payment, the dividend yield will decrease.
DKS Price Action: Shares of Dick's rose 0.04% to close at $235.06 on Thursday.
Analysts expect the Coraopolis, Pennsylvania-based retailer to report quarterly earnings at $3.82 per share, up from $2.82 per share in the year-ago period.
On Aug. 28, Wedbush analyst Seth Basham maintained Dick's Sporting with a Neutral and raised the price target from $230 to $250.
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