Home Depot, Inc. (NYSE:HD) will report third-quarter earnings results on Tuesday, November 12, before the opening bell.
Analysts expect the Atlanta-based retailer to report quarterly profit of $3.64 per share. That’s down from $3.81 per share in the same period last year. Home Depot expects to report quarterly sales of $39.17 billion, according to data from Benzinga Pro.
On Friday, Telsey Advisory Group analyst Joseph Feldman upgraded Home Depot’s rating to Outperform from Market Perform and raised the price target to $455 from $360.
With the recent buzz surrounding Home Depot ahead of its quarterly earnings, some investors may also be looking at potential gains from the company’s dividends. Home Depot currently offers an annual dividend yield of 2.22%. That’s a quarterly dividend amount of $2.25 per share ($9.00 per year).
To figure out how to make $500 monthly with Home Depot, we’ll start with the annual goal of $6,000 ($500 x 12 months).
We then take this amount and divide it by Home Depot’s $9.00 dividend: $6,000 / $9.00 = 667 shares.
So an investor would need to own about $270,735 worth of Home Depot, or 667 shares, to generate a monthly dividend income of $500.
Assuming a more conservative goal of $100 per month ($1,200 per year), we perform the same calculation: $1,200 / $9.00 = 133 shares, or $53,985 to generate a monthly dividend income of $100.
Watch more earnings on HD
Keep in mind that the dividend yield can be constantly changing because the dividend payout and the stock price both fluctuate over time.
The dividend yield is calculated by dividing the annual dividend payment by the current share price. As the share price changes, the dividend yield will also change.
For example, if a stock pays an annual dividend of $2 and the current price is $50, the dividend yield would be 4%. However, if the stock price rises to $60, the dividend yield drops to 3.33% ($2/$60).
Conversely, if the stock price falls to $40, the dividend yield would increase to 5% ($2/$40).
Additionally, the dividend payout itself can change over time, which can also impact the dividend yield. If a company increases its dividend payment, the dividend yield will increase even if the share price remains the same. Likewise, if a company reduces its dividend payout, the dividend yield will fall.
HD price promotion: Shares of Home Depot rose 1.6% to close at $405.90 on Friday.
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