How To Earn $500 A Month From Levi Strauss Stock Ahead Of Q1 Earnings Report

Levi Strauss & Co. (NYSE:LEVI) is set to release earnings results for its first quarter, after the closing bell on April 3, 2024.

Analysts expect the San Francisco, California-based company to report quarterly earnings at 21 cents per share, down from 34 cents per share in the year-ago period. Levi is projected to report quarterly revenue of $1.55 billion, according to data from Benzinga Pro.

On Jan. 25, Levi said fourth-quarter revenue increased 3% year-over-year to $1.64 billion, which missed the consensus estimate of $1.66 billion. The company reported quarterly earnings of 44 cents per share, which beat analyst estimates of 43 cents per share.

With the recent buzz around Levi Strauss, some investors may be eyeing potential gains from the company’s dividends too. As of now, Levi Strauss offers an annual dividend yield of 2.56%, which is a quarterly dividend amount of 12 cents per share (48 cents 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 $234,250 or around 12,500 shares. For a more modest $100 per month or $1,200 per year, you would need $46,850 or around 2,500 shares.

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To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($0.48 in this case). So, $6,000 / $0.48 = 12,500 ($500 per month), and $1,200 / $0.48 = 2,500 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.

LEVI Price Action: Shares of Levi Strauss fell 7.7% to close at $18.74 on Tuesday.

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