How To Earn $500 A Month From Caleres Stock Ahead Of Q4 Earnings

Some investors may be eyeing potential gains from Caleres, Inc.'s CAL dividends after the company releases its fourth quarter earnings report before the opening bell on March 19, 2024.
The St. Louis, Missouri-based footwear company currently offers an annual dividend yield of 0.72%, which is a quarterly dividend amount of 7 cents per share (28 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 $835,731 or around 21,429 shares. For a more modest $100 per month or $1,200 per year, you would need $167,154 or around 4,286 shares.

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To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($0.28 in this case). So, $6,000 / $0.28 = 21,429 ($500 per month), and $1,200 / $0.28 = 4,286 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.

CAL Price Action: Analysts expect the company to report quarterly earnings at 85 cents per share, up from 65 cents per share in the year-ago period.

Caleres is projected to post revenue of $694.33 million, compared to $696.43 million in the year-earlier quarter, according to data from Benzinga Pro.

Shares of Caleres gained 1.7% to close at $39.00 on Friday.

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Image: Courtesy of Caleres