Dick’s Sporting Goods, Inc. (DKS) is anticipated to report revenue of $3.44 billion when it unveils its second-quarter earnings on Wednesday, September 4th. The company’s recent buzz has some investors considering the potential gains from its dividend payouts. Currently, Dick’s boasts a dividend yield of 1.87%, translating to a quarterly dividend of $1.10 per share ($4.40 annually).
To determine how many shares are needed to earn a monthly dividend income of $500, let’s break it down: First, calculate the yearly target: $500 x 12 months = $6,000. Next, divide this target by Dick’s annual dividend: $6,000 / $4.40 = 1,364 shares. In essence, an investor would need approximately 1,364 shares, valued at roughly $320,622, to generate a monthly dividend income of $500.
For a more conservative goal of $100 per month ($1,200 annually), we can apply the same calculation: $1,200 / $4.40 = 273 shares. This means an investment of approximately $64,171 (273 shares) would be required to earn $100 monthly in dividends.
It’s essential to acknowledge that dividend yield is dynamic and can fluctuate over time due to changes in both the dividend payment and the stock price. The dividend yield is calculated by dividing the annual dividend payment by the current stock price. As the stock price fluctuates, so too will the dividend yield.
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 rises to $60, the dividend yield would decrease to 3.33% ($2/$60). Conversely, if the stock price falls to $40, the dividend yield would increase to 5% ($2/$40).
Furthermore, the dividend payment itself can be subject to adjustments, which can also impact the dividend yield. If a company raises its dividend payment, the dividend yield will increase even if the stock price remains constant. Similarly, a reduction in dividend payment will lead to a decrease in dividend yield.
Dick’s Sporting Goods’ share price closed at $235.06 on Thursday, up by 0.04%. Analysts predict the Coraopolis, Pennsylvania-based retailer to report quarterly earnings of $3.82 per share, exceeding the $2.82 per share recorded in the corresponding period last year. On August 28, Wedbush analyst Seth Basham maintained a Neutral rating for Dick’s Sporting while raising the price target from $230 to $250.
