How To Earn $500 A Month From Lowe's Stock Ahead Of Q1 Earnings Report

Lowe’s Companies, Inc. LOW is expected to release earnings results for its first quarter, before the opening bell on Tuesday.

Analysts expect the Mooresville, North Carolina-based company to report quarterly earnings at $2.93 per share, down from $3.67 per share in the year-ago period. Lowe’s is projected to post quarterly revenue of $21.10 billion, compared to $21.6 billion a year earlier, according to data from Benzinga Pro.

Before the release of quarterly earnings, Evercore ISI Group analyst Greg Melich maintained Lowe’s Companies with an In-Line rating while raising the price target from $245 to $250 on May 14.

With the recent buzz around Lowe’s, some investors may be eyeing potential gains from the company's dividends. As of now, Lowe’s has a dividend yield of 1.90%, which is a quarterly dividend amount of $1.10 a share ($4.40 a year).

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

Next, we take this amount and divide it by Lowe’s $4.40 dividend: $6,000 / $4.40  = 1,364 shares

So, an investor would need to own approximately $315,234 worth of Lowe’s, or 1,364 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 / $4.40 = 273 shares, or $63,093 to generate a monthly dividend income of $100.

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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.

LOW Price Action: Shares of Lowe’s fell 0.5% to close at $231.11 on Friday.

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