How To Earn $500 A Month From La-Z-Boy Stock Ahead Of Q1 Earnings

La-Z-Boy Incorporated LZB is expected to release earnings results for its fiscal first quarter, after the closing bell on Tuesday, Aug. 20.

Analysts expect the Monroe, Michigan-based company to report quarterly earnings at 60 cents per share, down from 62 cents per share in the year-ago period. La-Z-Boy is projected to post revenue of $479.7 million, according to data from Benzinga Pro.

On June 17, La-Z-Boy posted better-than-expected quarterly earnings.

With the recent buzz around La-Z-Boy, some investors may be eyeing potential gains from the company's dividends. As of now, La-Z-Boy has a dividend yield of 1.86%, which is a quarterly dividend amount of 20 cents a share (80 cents a year).

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

Next, we take this amount and divide it by La-Z-Boy's $0.80 dividend: $6,000 / $0.80  = 7,500 shares

So, an investor would need to own approximately $321,825 worth of La-Z-Boy, or 7,500 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 / $0.80 = 1,500 shares, or $64,365 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.

LZB Price Action: Shares of La-Z-Boy gained 2.3% to close at $42.91 on Friday.

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Image created using artificial intelligence via Midjourney.