How To Earn $500 A Month From La-Z-Boy Stock Ahead Of Q3 Earnings Results

La-Z-Boy Incorporated LZB is expected to release earnings results for its third quarter fiscal 2024, after the closing bell on Feb. 20, 2024.

Analysts expect the Monroe, Michigan-based company to report quarterly earnings at 72 cents per share, versus year-ago earnings of 91 cents per share. La-Z-Boy is projected to post revenue of $523.09 million, according to data from Benzinga Pro.

La-Z-Boy recently announced its investment in furniture market showrooms.

During November, the company reported better-than-expected second-quarter financial results and raised its quarterly cash dividend from 18 cents to 20 cents per share

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 2.10%, which is a quarterly dividend amount of 20 cents per share (80 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 $285,225 or around 7,500 shares. For a more modest $100 per month or $1,200 per year, you would need $57,045 or around 1,500 shares.

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To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($0.80 in this case). So, $6,000 / $0.80 = 7,500 ($500 per month), and $1,200 / $0.80 = 1,500 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.

LZB Price Action: Shares of La-Z-Boy fell 1.1% to close at $38.03 on Friday.

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Image created using artificial intelligence with MidJourney.