How To Earn $500 A Month From Ross Stores Stock Ahead Of Q2 Earnings

Ross Stores, Inc. ROST is expected to release earnings results for its second quarter, after the closing bell on Thursday, Aug. 22.

Analysts expect the Dublin, California-based company to report quarterly earnings at $1.5 per share, up from $1.32 per share in the year-ago period. Ross Stores is projected to post revenue of $5.25 billion, according to data from Benzinga Pro.

On Aug. 21, Ross Stores said its Board of Directors declared a regular quarterly cash dividend of 36.75 cents per common share.

With the recent buzz around Ross Stores, some investors may be eyeing potential gains from the company's dividends. As of now, Ross Stores has a dividend yield of 0.95%. That’s a quarterly dividend amount of 36.75 cents a share ($1.47 a year).

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

Next, we take this amount and divide it by Ross Stores' $1.47 dividend: $6,000 / $1.47  = 4,082 shares

So, an investor would need to own approximately $628,424 worth of Ross Stores, or 4,082 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 / $1.47 = 816 shares, or $125,623 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.

ROST Price Action: Shares of Ross Stores gained 4.2% to close at $153.95 on Wednesday.

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