How To Earn $500 A Month From Lowe's Stock Ahead Of Q4 Earnings

Lowe’s Companies, Inc. LOW will release its fourth-quarter financial results before the opening bell on Wednesday, Feb. 26.

Analysts expect the Mooresville, North Carolina-based company to report quarterly earnings at $1.84 per share, up from $1.77 per share in the year-ago period. Lowe’s projects quarterly revenue of $18.29 billion, compared to $18.6 billion a year earlier, according to data from Benzinga Pro.

On Feb. 20, Telsey Advisory Group analyst Joseph Feldman maintained Lowe’s with an Outperform rating and maintained a $305 price target.

See Also: Home Depot ‘Likely To Outcomp’ Lowe’s In Q4, Analyst Says As Home Improvement Battle Heads Toward Earnings

With the recent buzz around Lowe’s, some investors may be eyeing potential gains from the company’s dividends too. As of now, the retailer offers an annual dividend yield of 1.92%, which is a quarterly dividend amount of $1.15 per share ($4.60 a year).

To figure out how to earn $500 monthly from Lowe’s, we start with the yearly target of $6,000 ($500 x 12 months).

Next, we take this amount and divide it by Lowe’s $4.60 dividend: $6,000 / $4.60 = 1,304 shares.

So, an investor would need to own approximately $309,152 worth of Lowe’s, or 993 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 / $4.60 = 261 shares, or $61,878 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, impacting the dividend yield. If a company increases its dividend payment, the dividend yield will increase even if the stock price remains the same. Similarly, the dividend yield will decrease if a company decreases its dividend payment.

Price Action: Shares of Lowe’s fell by 0.8% to close at $237.21 on Monday.

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