How To Earn $500 A Month From Kohl's Stock Ahead Of Q4 Earnings

Kohl’s Corporation (NYSE:KSS) will release earnings for its fourth quarter before the opening bell on Tuesday, March 10.

Analysts expect the company to report earnings of 85 cents per share. That's down from 95 cents per share in the year-ago period. The consensus estimate for Kohl’s quarterly revenue is $5.03 billion (it reported $5.17 billion last year), according to Benzinga Pro.

Ahead of quarterly earnings, Citigroup analyst Paul Lejuez, on Feb. 19, maintained Kohl’s with a Neutral and lowered the price target from $23 to $20.

With the recent buzz around Kohl’s, some investors may be eyeing potential gains from the company's dividends too. As of now, Kohl’s has an annual dividend yield of 3.19%, which is a quarterly dividend amount of 12.5 cents per share (50 cents 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 $0.50 dividend: $6,000 / $0.50 = 12,000 shares.

So, an investor would need to own approximately $181,440 worth of Kohl’s, or 12,000 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 / $0.50 = 2,400 shares, or $36,288 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 fell by 3.5% to close at $15.12 on Friday.

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