Benzinga - by Priya Nigam, Benzinga Staff Writer.
Levi Strauss & Co (NYSE: LEVI) on Thursday reported better-than-expected earnings for its third quarter, while sales missed estimates. The company also lowered its guidance for the year.
Levi Strauss reported quarterly earnings of 28 cents per share which beat the analyst consensus estimate of 27 cents. The company reported quarterly sales of $1.51 billion which missed the analyst consensus estimate of $1.54 billion.
The company said it sees fiscal 2023 adjusted diluted EPS to be on the low-end of the previously guided range of $1.10 to $1.20, versus the $1.12 estimate. Reported net revenues are expected to be flat to up 1% year-over-year.
With Levi Strauss reporting upbeat quarterly earnings, some investors may be eyeing potential gains from the company’s dividends. As of now, Levi Strauss has a dividend yield of 3.66%, which is a quarterly dividend amount of 12 cents a share (48 cents a year).
To figure out how to earn $500 monthly from Levi Strauss dividends, we start with the yearly target of $6,000 ($500 x 12 months).
Next, we take this amount and divide it by Levi Strauss $0.48 dividend: $6,000 / $0.48 = 12,500 shares
So, an investor would need to own approximately $163,750 worth of Levi Strauss, or 12,500 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 / 0.48 = 2,500 shares, or $32,750 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.
LEVI Price Action: Shares of Levi Strauss fell 0.8% to close at $13.10 on Friday.
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