Benzinga - by Lisa Levin, Benzinga Editor.
Ralph Lauren Corporation (NYSE: RL) posted upbeat earnings for its second quarter on Wednesday.
Ralph Lauren reported second-quarter FY24 sales growth of 3% year-on-year to $1.63 billion, beating the analyst consensus estimate of $1.61 billion. Adjusted EPS of $2.10 beat the consensus estimate of $1.93.
With Ralph Lauren reporting upbeat quarterly earnings, some investors may be eyeing potential gains from the company’s dividends. As of now, Ralph Lauren has a dividend yield of 2.58%, which is a quarterly dividend amount of 75 cents a share ($3.00 a year).
To figure out how to earn $500 monthly from Ralph Lauren dividends, we start with the yearly target of $6,000 ($500 x 12 months).
Next, we take this amount and divide it by Ralph Lauren $3.00 dividend: $6,000 / $3.00 = 2,000 shares
So, an investor would need to own approximately $232,940 worth of Ralph Lauren, or 2,000 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 / $3.00 = 400 shares, or $46,588 to generate a monthly dividend income of $100.
Also Read: These 3 Financial Stocks Delivering High-Dividend Yields Are Recommended By Wall Street's Most Accurate Analysts
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.
RL Price Action: Shares of Ralph Lauren gained 3.2% to close at $116.47 on Wednesday.
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