Lowe’s Companies, Inc. (NYSE:LOW) is scheduled to report first-quarter earnings before the opening bell on Wednesday, May 20.



Analysts expect the home improvement retailer to post earnings of $2.97 per share, up from $2.92 a year earlier, on revenue of $22.88 billion compared with $20.93 billion last year, according to Benzinga Pro.



With growing attention on Lowe's stock, some investors remain focused on its dividend appeal. Lowe's currently offers an annual dividend yield of 2.20%, paying $1.20 per share quarterly, or $4.80 annually. Here's how much investors would need to invest in Lowe's to generate $500 in monthly dividend income.



To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $272,525 or around 1,250 shares. For a more modest $100 per month or $1,200 per year, you would need $54,505 or around 250 shares.



To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($4.80 in this case). So, $6,000 / $4.80 = 1,250 ($500 per month), and $1,200 / $4.80 = 250 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: Compute the dividend yield 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.



LOW Price Action: Shares of Lowe’s fell 0.2% to close at $218.02 on Monday.



Ahead of the report, Stifel analyst W. Andrew Carter maintained a Hold rating on Lowe's shares Monday and lowered the price target from $270 to $220.



<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"><div>

</div></figure>



Photo via Shutterstock

ONLN

IBUY

EBIZ

Lowe's Companies, Inc. (NYSE:LOW) is set to report Q1 earnings on May 20, with analysts expecting earnings of $2.97 per share. The company offers a 2.20% annual dividend yield, requiring an investment of approximately $272,525 to generate $500 monthly in dividends. Shares closed at $218.02, with a Hold rating maintained by Stifel analyst W. Andrew Carter, who lowered the price target from $270 to $220.

benzinga_article

Lowes

VanEck Retail ETF

ProShares Online Retail

SPDR S&P Retail ETF

Amplify Online Retail ETF

Global X E-commerce ETF

Stifel Financial

STIFEL FINANCIAL CORP 6.125% DEP SHS REP 1/1000 NON CU PF SR C

Stifel Financial Pref Share SFB 5.2 10/15/47

STIFEL FINANCIAL CORP 6.25%NON CUM DEP SHS REP 1/1000TH SER B

STIFEL FINANCIAL CORP 4.50% DEP SHS REP 1/1000TH PREF SHS SR D

How To Earn $500 A Month From Lowe's Stock Ahead Of Q1 Earnings