Academy Sports and Outdoors, Inc. (ASO) is gearing up to release its second-quarter earnings report on Tuesday. While analysts predict a slight dip in earnings per share compared to the same period last year, the company’s dividend yield has caught the attention of investors seeking passive income.
Let’s delve into the details: Analysts expect Academy Sports & Outdoors to report earnings of $2.03 per share, a modest decline from $2.09 per share in the previous year. Revenue is projected to reach $1.57 billion. While earnings may be slightly lower, the company’s dividend yield of 0.82% offers a potential income stream for investors. This translates to a quarterly dividend payment of 11 cents per share, equating to 44 cents annually.
Now, let’s calculate how much you’d need to invest in Academy Sports & Outdoors to generate a monthly dividend income of $500 or $100. To achieve a monthly income of $500, you’d need to target an annual income of $6,000. Dividing this amount by the annual dividend of $0.44 per share, we arrive at 13,636 shares. This translates to an investment of approximately $730,617, based on the current stock price.
For a more conservative monthly income goal of $100, the calculation is similar. An annual income of $1,200 divided by the $0.44 dividend equates to 2,727 shares, requiring an investment of $146,113.
It’s crucial to remember that the dividend yield can fluctuate over time. The stock price and the dividend payment itself can both change, impacting the dividend yield. As the stock price increases, the dividend yield decreases. Conversely, a decrease in the stock price leads to an increase in the dividend yield. Additionally, the company can adjust its dividend payment, which also influences the dividend yield.
To illustrate this point, if a company pays an annual dividend of $2 and its stock price is $50, the dividend yield would be 4%. However, if the stock price rises to $60, the dividend yield drops to 3.33%. Conversely, if the stock price falls to $40, the dividend yield increases to 5%.
Similarly, if a company increases its dividend payment, the dividend yield will increase even if the stock price remains unchanged. Conversely, a decrease in dividend payments will result in a lower dividend yield.
Shares of Academy Sports & Outdoors ended trading at $53.58 on Friday, down 0.4%. As investors anticipate the company’s earnings report, the stock’s performance and dividend yield are closely watched.
