Benzinga - by Avi Kapoor, Benzinga Staff Writer.
Williams-Sonoma, Inc. (NYSE:WSM) is expected to release earnings results for its first quarter, before the opening bell on Wednesday.
Analysts expect the San Francisco, California-based company to report quarterly earnings at $2.68 per share, up from $2.64 per share in the year-ago period. Williams-Sonoma is projected to post revenue of $1.65 billion, according to data from Benzinga Pro.
On May 17, Wedbush analyst Seth Basham maintained Williams-Sonoma with an Outperform, while raising the price target from $330 to $350. Evercore ISI Group analyst Oliver Wintermantel also increased the price target on Williams-Sonoma from $310 to $315 last week.
With the recent buzz around Williams-Sonoma, some investors may be eyeing potential gains from the company's dividends too. As of now, Williams-Sonoma offers an annual dividend yield of 1.43%, which is a quarterly dividend amount of $1.13 per share ($4.52 a year).
So, how can investors exploit its dividend yield to pocket a regular $500 monthly?
To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $420,102 or around 1,327 shares. For a more modest $100 per month or $1,200 per year, you would need $83,894 or around 265 shares.
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To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($4.52 in this case). So, $6,000 / $4.52 = 1,327 ($500 per month), and $1,200 / $4.52 = 265 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: The dividend yield is computed 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.
WSM Price Action: Shares of Williams-Sonoma gained 2.3% to close at $316.58 on Monday.
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