How To Earn $500 A Month From Kohl's Stock Ahead Of Q2 Earnings Report

Kohl’s Corporation KSS is expected to release earnings results for its second quarter, before the opening bell on Wednesday.

Analysts expect the Menomonee Falls, Wisconsin-based company to report quarterly earnings at 45 cents per share, down from 52 cents per share in the year-ago period. Kohl’s is projected to post revenue of $3.58 billion, according to data from Benzinga Pro.

On Aug. 21, Telsey Advisory Group analyst Dana Telsey maintained Kohl’s with a Market Perform and maintained a price target of $23.

With the recent buzz around Kohl’s, some investors may be eyeing potential gains from the company's dividends. As of now, Kohl’s has a dividend yield of 10.07%, which is a quarterly dividend amount of 50 cents a share ($2 a year).

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

Next, we take this amount and divide it by Kohl’s $2.00 dividend: $6,000 / $2.00 = 3,000 shares

So, an investor would need to own approximately $59,610 worth of Kohl’s, or 3,000 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 / $2.00 = 600 shares, or $11,922 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.

KSS Price Action: Shares of Kohl’s gained 0.7% to close at $19.87 on Monday.

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