Landstar System, Inc. (NASDAQ:LSTR) will release earnings results for the first quarter, before the opening bell on Tuesday, May 13.

Analysts expect the Jacksonville, Florida-based company to report quarterly earnings at 94 cents per share, down from $1.32 per share in the year-ago period. According to data from Benzinga Pro, Landstar System projects quarterly revenue at $1.13 billion, compared to $1.17 billion a year earlier.

On April 24, Truist Securities analyst Lucas Servera maintained Landstar System with a Hold and lowered the price target from $150 to $135.

With the recent buzz around Landstar System, some investors may be eyeing potential gains from the company's dividends too. Currently, Landstar System offers an annual dividend yield of 1.06% — a quarterly dividend of 36 cents per share. That’s $1.44 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 $564,879 or around 4,167 shares. For a more modest $100 per month or $1,200 per year, you would need $112,921 or around 833 shares.

To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($1.44 in this case). So, $6,000 / $1.44 = 4,167 ($500 per month), and $1,200 / $1.44 = 833 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.

LSTR Price Action: Shares of Landstar System fell 0.4% to close at $135.56 on Friday.

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