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

The Kroger Co. KR will release earnings results for the second quarter before the opening bell on Thursday, Sept. 11.

Analysts expect the company to report quarterly earnings at $1.00 per share, up from 93 cents per share in the year-ago period. Kroger projects to report quarterly revenue at $34.15 billion, compared to $33.91 billion a year earlier, according to data from Benzinga Pro.

• KR is biding its time at current levels. See the market dynamics here.

On Aug. 20, JP Morgan analyst Thomas Palmer downgraded Kroger from Overweight to Neutral and lowered the price target from $82 to $75.

With the recent buzz around Kroger, some investors may be eyeing potential gains from the company's dividends, too. As of now, Kroger offers an annual dividend yield of 2.07%, which is a quarterly dividend amount of 35 cents per share ($1.40 a year).

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

Next, we take this amount and divide it by Kroger's $1.40 dividend: $6,000 / $1.40 = 4,286 shares.

So, an investor would need to own approximately $289,862 worth of Kroger, or 4,286 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 / $1.40 = 857 shares, or $57,959 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.

KR Price Action: Shares of Kroger fell by 0.5% to close at $67.63 on Tuesday.

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