Levi Strauss & Co. (NYSE:LEVI) will release its third-quarter earnings report after the closing bell on Wednesday, Oct. 7.
Some of the apparel company’s investors may be eyeing potential dividend gains. Currently, Levi Strauss has an annual dividend yield of 3.16%, with a quarterly dividend of 16 cents per share (64 cents a year).
To earn $500 monthly from Levi Strauss, we start with a yearly target of $6,000 ($500 x 12 months).
Next, we divide that amount by LEVI’s $0.64 dividend: $6,000 / $0.64 = 9,375 shares.
So, an investor would need to own approximately $190,031 worth of Levi Strauss, or 9,375 shares to generate a monthly dividend income of $500.
Assuming a more conservative goal of $100 monthly ($1,200 annually), we do the same calculation: $1,200 / $0.64 = 1,875 shares, or $38,006 to generate a monthly dividend income of $100.
Note that dividend yield can change on a rolling basis, as dividend payments and stock prices both fluctuate over time.
The dividend yield is calculated by dividing the annual dividend payment by the current stock price. As the stock price changes, the dividend yield will also change.
For example, if a stock pays an annual dividend of $2 and its current price is $50, its dividend yield would be 4%. However, if the stock price increases to $60, the dividend yield would decrease to 3.33% ($2/$60).
Conversely, if the stock price decreases to $40, the dividend yield would increase to 5% ($2/$40).
Further, the dividend payment itself can also 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 stock price remains the same. Similarly, if a company decreases its dividend payment, the dividend yield will decrease.
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Levi Strauss Price Action
Analysts expect the company to report quarterly earnings of 36 cents per share, up from 34 cents per share a year ago. The consensus estimate for LEVI’s quarterly revenue is $1.62 billion. It reported $1.54 billion last year, according to Benzinga Pro.
Ahead of quarterly earnings, Jefferies analyst Blake Anderson maintained a Buy rating on Levi Strauss on Oct. 1 and cut the price target from $27 to $25.
Shares of Levi Strauss gained 2% to close at $20.27 on Monday.
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