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

Macy’s, Inc. (NYSE:M) will release its first-quarter financial results before the opening bell on Wednesday, May 28.

Analysts expect the company to report quarterly earnings at 14 cents per share, down from 27 cents per share in the year-ago period and quarterly revenue of $4.5 billion, compared to $4.85 billion a year earlier, according to data from Benzinga Pro.

On May 6, Morgan Stanley analyst Alex Straton maintained Macy’s with an Equal-Weight rating and lowered the price target from $14 to $12.

With the recent buzz around Macy’s, some investors may be eyeing potential gains from the company's dividends too. As of now, Macy’s offers an annual dividend yield of 6.31%, which is a quarterly dividend amount of 18.24 per share (73 cents a year).

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

Next, we take this amount and divide it by Macy’s $0.73 dividend: $6,000 / 0.73 = 8,219 shares.

So, an investor would need to own approximately $95,094 worth of Macy’s, or 8,219 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 / $0.73 = 1,644 shares, or $19,021 to generate a monthly dividend income of $100.

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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.

M Price Action: Shares of Macy’s fell by 2.9% to close at $11.57 on Friday.

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