PVH Corp. PVH will release earnings results for the second quarter after the closing bell on Tuesday, Aug. 26.
Analysts expect the New York-based company to report quarterly earnings at $2.00 per share, down from $3.01 per share in the year-ago period. PVH projects to report quarterly revenue of $2.12 billion, compared to $2.07 billion a year earlier, according to data from Benzinga Pro.
Some investors may be eyeing potential gains from PVH’s dividends. The company currently offers an annual dividend yield of 0.19%, which is a semi-annual dividend amount of 4 cents per share (15 cents a year).
So, how can investors capitalize on its dividend yield to earn a regular $500 monthly?
To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $3,194,800 or around 40,000 shares. For a more modest $100 per month or $1,200 per year, you would need $638,960 or around 8,000 shares.
To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($0.15 in this case). Therefore, $6,000 / $0.15 = 40,000 ($500 per month), and $1,200 / $0.15 = 8,000 shares ($100 per month).
Note that the dividend yield can change on a rolling basis, as both the dividend payment and the stock price 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 remains unchanged. Conversely, if the dividend payment decreases, so will the yield.
PVH Price Action: Shares of PVH gained 4.6% to close at $79.87 on Friday.
On Aug. 20, Telsey Advisory Group analyst Dana Telsey maintained PVH with an Outperform rating and maintained a $90 price target.
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