How To Earn $500 A Month From Home Depot Stock Ahead Of Q3 Earnings

Home Depot, Inc. HD will release earnings results for the third quarter, before the opening bell, on Tuesday, Nov. 12.

Analysts expect the Atlanta-based retailer to report quarterly earnings at $3.64 per share. That’s down from $3.81 per share in the year-ago period. Home Depot projects to report quarterly revenue of $39.17 billion, according to data from Benzinga Pro.

On Friday, Telsey Advisory Group analyst Joseph Feldman upgraded the rating for Home Depot from Market Perform to Outperform and raised the price target from $360 to $455.

With the recent buzz around Home Depot ahead of quarterly earnings, some investors may be eyeing potential gains from the company's dividends too. Home Depot currently offers an annual dividend yield of 2.22%. That’s a quarterly dividend amount of $2.25 per share ($9.00 a year).

To figure out how to earn $500 monthly from Home Depot, we start with the yearly target of $6,000 ($500 x 12 months).

Next, we 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 approximately $270,735 worth of Home Depot, or 667 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 / $9.00 = 133 shares, or $53,985 to generate a monthly dividend income of $100.

Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price 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.

HD Price Action: Shares of Home Depot gained by 1.6% to close at $405.90 on Friday.

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