Target Corporation (NYSE:TGT) is set to report first-quarter earnings before the opening bell on Wednesday, May 20.
Analysts expect the retailer to post earnings of $1.45 per share, up from $1.30 a year earlier, on revenue of $24.63 billion versus $23.85 billion last year, according to Benzinga Pro.
Ahead of the report, Piper Sandler analyst Peter Keith maintained a Neutral rating on the stock Friday and raised his price target from $119 to $121. Meanwhile, JPMorgan Chase analyst Christopher Horvers also maintained a Neutral rating and lifted his target from $120 to $129.
With renewed attention on Target shares, some investors may also be looking at the company's dividend potential. Target currently offers an annual dividend yield of 3.75%, paying $1.14 per share quarterly, or $4.56 annually.
So, how much would investors need to own to generate $500 in monthly dividend income from the stock?
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To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $159,947 or around 1,316 shares. For a more modest $100 per month or $1,200 per year, you would need $31,965 or around 263 shares.
To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($4.56 in this case). So, $6,000 / $4.56 = 1,316 ($500 per month), and $1,200 / $4.56 = 263 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 dividend payments can affect 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.
TGT Price Action: Shares of Target fell 1.3% to close at $121.54 on Thursday.
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