How To Earn $500 A Month From Levi Strauss Stock Ahead Of Q1 Earnings

Levi Strauss & Co. LEVI will release its first-quarter earnings results after the closing bell on Monday, April 7.

Analysts expect the company to report quarterly earnings at 28 cents per share. That’s up from 26 cents per share in the year-ago period. According to data from Benzinga Pro, Levi Strauss projects quarterly revenue at $1.54 billion, compared to $1.56 billion a year earlier.

On Wednesday, Telsey Advisory Group analyst Dana Telsey maintained Levi Strauss with an Outperform rating and maintained a $23 price target.

With the recent buzz around Levi Strauss, some investors may be eyeing potential gains from the company’s dividends. Currently, Levi Strauss offers an annual dividend yield of 3.60% and a quarterly dividend of 13 cents per share (52 cents 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 $166,623 or around 11,539 shares. For a more modest $100 per month or $1,200 per year, you would need $33,328 or around 2,308 shares.

To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($0.52 in this case). So, $6,000 / $0.52 = 11,539 ($500 per month), and $1,200 / $0.52 = 2,308 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.

LEVI Price Action: Shares of Levi Strauss fell 13.7% to close at $14.44 on Thursday.

Read More:

Image: Shutterstock