How To Earn $500 A Month From Ross Stores Stock Ahead Of Q1 Earnings

Ross Stores, Inc. ROST is expected to release earnings results for its first quarter, after the closing bell on Thursday.

Analysts expect the Dublin, California-based company to report quarterly earnings at $1.34 per share, up from $1.09 per share in the year-ago period. Analysts project Ross Stores to post revenue of $4.83 billion, according to data from Benzinga Pro.

On May 22, Ross Stores declared a regular quarterly cash dividend of 36.75 cents per share, payable on June 28 to stockholders of record as of June 11.

With the recent buzz around Ross Stores, some investors may be eyeing potential gains from the company's dividends too. As of now, Ross Stores offers an annual dividend yield of 1.12%. That’s a quarterly dividend amount of 36.75 cents per share ($1.47 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 $536,824 or around 4,082 shares. For a more modest $100 per month or $1,200 per year, you would need $107,312 or around 816 shares.

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To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($1.47 in this case). So, $6,000 / $1.47 = 4,082 ($500 per month), and $1,200 / $1.47 = 816 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: Investors can compute the dividend yield 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.

ROST Price Action: Shares of Ross Stores fell 0.6% to close at $131.51 on Wednesday.

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