How To Earn $500 A Month From Target Stock Ahead Of Q4 Print

Target Corporation TGT offers an annual dividend yield of 2.88%, which is a quarterly dividend amount of $1.10 per share ($4.40 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 $208,583 or around 1,364 shares. For a more modest $100 per month or $1,200 per year, you would need $41,747 or around 273 shares.

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To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($4.40 in this case). So, $6,000 / $4.40 = 1,364 ($500 per month), and $1,200 / $4.40 = 273 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.

More about Target: The retailer is expected to release earnings results for the fourth quarter, before the opening bell on March 5, 2024.

Analysts expect the Minneapolis-based chain to report quarterly earnings at $2.41 per share, up from year-ago earnings of $1.89 per share. Target is projected to post revenue of $31.83 billion, compared to $31.39 billion in the year-earlier quarter, according to data from Benzinga Pro.

On Feb. 20, Target announced a collaboration with Diane von Furstenberg for affordable spring collection.

With the recent buzz around Target, some investors may be eyeing potential gains from the company’s dividends, too.

TGT Price Action: Shares of Target gained 1% to close at $152.92 on Thursday.

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