La-Z-Boy Incorporated (NYSE:JBL) will release its fourth-quarter earnings results after the closing bell on Tuesday, June 17.
Analysts expect the Monroe, Michigan-based company to report quarterly earnings at 93 cents per share, down from 95 cents per share in the year-ago period. According to data from Benzinga Pro, La-Z-Boy projects quarterly revenue of $557.44 million, compared to $553.53 million a year earlier.
On April 25, Keybanc analyst Bradley Thomas upgraded La-Z-Boy from Sector Weight to Overweight and announced a $46 price target.
With the recent buzz around La-Z-Boy, some investors may be eyeing potential gains from the company's dividends too. As of now, La-Z-Boy offers an annual dividend yield of 2.26%, which is a quarterly dividend amount of 22 cents per share (88 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 $265,357 or around 6,818 shares. For a more modest $100 per month or $1,200 per year, you would need $53,087 or around 1,364 shares.
To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($0.88 in this case). So, $6,000 / $0.88 = 6,818 ($500 per month), and $1,200 / $0.88 = 1,364 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.
JBL Price Action: Shares of Jabil fell 1.8% to close at $175.84 on Friday.
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