Home Depot, Inc. HD will release its first-quarter earnings results before the opening bell on Tuesday, May 20.
Analysts expect the Atlanta, Georgia-based company to report quarterly earnings at $3.59 per share. That's down from $3.63 per share in the year-ago period. According to data from Benzinga Pro, Home Depot projects to report quarterly revenue at $39.14 billion, compared to $36.42 billion a year earlier.
On May 8, Wells Fargo analyst Zachary Fadem maintained Home Depot with an Overweight rating and lowered the price target from $445 to $420.
With the recent buzz around Home Depot, some investors may be eyeing potential gains from the company's dividends. Currently, Home Depot offers an annual dividend yield of 2.43%. Its quarterly dividend is $2.30 per share ($9.20 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 $246,676 or around 652 shares. For a more modest $100 per month or $1,200 per year, you would need $49,222 or around 130 shares.
See Also: Citizens And 2 Other Stocks Under $3 Insiders Are Buying
To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($9.20 in this case). So, $6,000 / $9.20 = 652 ($500 per month), and $1,200 / $9.20 = 130 shares ($100 per month).
Get StartedEarn 7.2% -- No Matter What the Fed Does
Markets expect rate cuts -- but your earnings don't have to suffer. Lock in 7.2% until 2028 from ten individual bonds.
Get Started
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.
HD Price Action: Shares of Home Depot gained 1.6% to close at $378.63 on Thursday.
Read More:
Wall Street's Most Accurate Analysts Give Their Take On 3 Consumer Stocks Delivering High-Dividend Yields
Image: Shutterstock
HDThe Home Depot Inc$379.260.17%Stock Score Locked: Edge Members Only
Benzinga Rankings give you vital metrics on any stock - anytime.
Unlock RankingsEdge RankingsMomentum57.06Growth49.48Quality-Value24.92Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs