How To Earn $500 A Month From Academy Sports And Outdoors Stock Ahead Of Q2 Earnings Report

Academy Sports and Outdoors, Inc. ASO is set to report earnings results for its second quarter, before the opening bell on Tuesday.

Analysts expect the Katy, Texas-based company to report quarterly earnings at $2.03 per share, down from $2.09 per share in the year-ago period. Academy Sports and Outdoors is projected to post revenue of $1.57 billion, according to data from Benzinga Pro.

On Sept. 5, Telsey Advisory Group analyst Joseph Feldman maintained Academy Sports with an Outperform rating and maintained a $65 price target.

With the recent buzz around Academy Sports and Outdoors, some investors may be eyeing potential gains from the company's dividends. As of now, Academy Sports and Outdoors has a dividend yield of 0.82%, which is a quarterly dividend amount of 11 cents a share (44 cents a year).

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

Next, we take this amount and divide it by Academy Sports and Outdoors' $0.44 dividend: $6,000 / $0.44 = 13,636 shares

So, an investor would need to own approximately $730,617 worth of Academy Sports and Outdoors, or 13,636 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 / $0.44 = 2,727 shares, or $146,113 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.

ASO Price Action: Shares of Academy Sports and Outdoors fell 0.4% to close at $53.58 on Friday.

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