How To Earn $500 A Month From Williams-Sonoma Stock Ahead Of Q4 Earnings

Williams-Sonoma, Inc. WSM will release its fourth-quarter financial results, before the opening bell, on Wednesday, March 19.

Analysts expect the company to report quarterly earnings at $2.93 per share, up from $2.72 per share in the year-ago period. Williams-Sonoma projects quarterly revenue of $2.35 billion, compared to $2.28 billion a year earlier, according to data from Benzinga Pro.

With the recent buzz around Williams-Sonoma, some investors may be eyeing potential gains from the company’s dividends too. As of now, Williams-Sonoma offers an annual dividend yield of 1.36%, which is a quarterly dividend amount of 57 cents per share ($2.28 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 $440,860 or around 2,632 shares. For a more modest $100 per month or $1,200 per year, you would need $88,105 or around 526 shares.

To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($2.28 in this case). So, $6,000 / $2.28 = 2,632 ($500 per month), and $1,200 / $2.28 = 526 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.

Price Action: Shares of Williams-Sonoma gained 1.5% to close at $167.50 on Friday.

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