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

Deere & Company DE will release its second-quarter earnings results before the opening bell on Thursday, May 15.

Analysts expect the Moline, Illinois-based company to report quarterly earnings at $5.64 per share, down from $8.53 per share in the year-ago period. According to data from Benzinga Pro, Deere projects quarterly revenue at $10.79 billion, compared to $13.61 billion a year earlier.

On April 22, Oppenheimer analyst Kristen Owen maintained Deere with an Outperform rating and raised the price target from $510 to $513.

With the recent buzz around Deere, some investors may be eyeing potential gains from the company's dividends. As of now, Deere offers an annual dividend yield of 1.30%. That’s a quarterly dividend of $1.62 per share ($6.48 a year).  So, how can investors exploit its dividend yield to pocket a regular $500 monthly?

To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $461,676 or around 926 shares. For a more modest $100 per month or $1,200 per year, you would need $92,235 or around 185 shares.

To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($6.48 in this case). So, $6,000 / $6.48 = 926 ($500 per month), and $1,200 / $6.48 = 185 shares ($100 per month).

Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.

How that works: The dividend yield is computed by dividing the annual dividend payment by the stock’s current price.

For example, if a stock pays an annual dividend of $2 and is currently priced at $50, the dividend yield would be 4% ($2/$50). However, if the stock price increases to $60, the dividend yield drops to 3.33% ($2/$60). Conversely, if the stock price falls to $40, the dividend yield rises to 5% ($2/$40).

Similarly, changes in the dividend payment can impact the yield. If a company increases its dividend, the yield will also increase, provided the stock price stays the same. Conversely, if the dividend payment decreases, so will the yield.

DE Price Action: Shares of Deere, which operates under the brand name John Deere, gained 0.6% to close at $498.57 on Tuesday.

Read More:

• Jim Cramer Is ‘OK’ With Harrow, Recommends Buying This Energy Stock

Image: Shutterstock