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

The Estée Lauder Companies Inc. EL is expected to release earnings results for its fourth quarter, before the opening bell on Monday, Aug. 19.

Analysts expect the New York-based company to report quarterly earnings at 27 cents per share, up from 7 cents per share in the year-ago period. Estée Lauder is projected to post revenue of $3.83 billion. It reported $3.63 billion a year earlier, according to data from Benzinga Pro.

With the recent buzz around Estee Lauder, some investors may be eyeing potential gains from the company's dividends. As of now, Estee Lauder has a dividend yield of 2.77%. That’s a quarterly dividend amount of 66 cents a share ($2.64 a year).

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

Next, we take this amount and divide it by Estee Lauder's $2.64 dividend: $6,000 / $2.64  = 2,273 shares

So, an investor would need to own approximately $216,253 worth of Estee Lauder, or 2,273 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 / $2.64 = 455 shares, or $43,289 to generate a monthly dividend income of $100.

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.

EL Price Action: Shares of Estee Lauder gained 3.8% to close at $95.14 on Thursday.

On Aug. 13, Telsey Advisory Group analyst Dana Telsey maintained Estee Lauder with a Market Perform rating and maintained the price target of $115.

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