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

KB Home KBH will release earnings results for the second quarter, after the closing bell on Monday, June 23.

With the recent buzz around the Los Angeles-based firm, some investors may be eyeing potential gains from the company's dividends. Currently, KB Home offers an annual dividend yield of 1.93%. That’s a quarterly dividend amount of 25 cents per share ($1.00 a year).

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

Next, we take this amount and divide it by KB Home's $1.00 dividend: $6,000 / $1.00 = 6,000 shares.

So, an investor would need to own approximately $310,500 worth of KB Home, or 6,000 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 / $1.00 = 1,200 shares, or $62,100 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.

KBH Price Action: Shares of KB Home gained by 2.2% to close at $51.75 on Friday.

Analysts expect KB Home to report quarterly earnings at $1.46 per share, down from $2.15 per share in the year-ago. The company projects to report quarterly revenue at $1.51 billion, compared to $1.71 billion a year earlier, according to data from Benzinga Pro.

On March 24, KB Home reported worse-than-expected first-quarter EPS and sales results.

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