Benzinga - by Avi Kapoor, Benzinga Staff Writer.
Nordstrom, Inc. (NYSE: JWN) is set to release earnings results for its fourth quarter, after the closing bell on March 5, 2024.
Analysts expect the Seattle-based retailer to report quarterly earnings at 86 cents per share, up from year-ago earnings of 74 cents per share.
The company is projected to post revenue of $4.38 billion for the latest quarter, compared to $4.32 billion in the year-earlier quarter, according to data from Benzinga Pro.
Nordstrom posted third-quarter earnings of 25 cents per share, up from 20 cents per share in the year-ago period on Nov. 21, 2023.
Some investors may be eyeing potential gains from the company’s dividends. Nordstrom currently has a dividend yield of 3.67%, which is a quarterly dividend amount of 19 cents a share (76 cents a year).
To figure out how to earn $500 monthly from Nordstrom dividends, we start with the yearly target of $6,000 ($500 x 12 months).
Next, we take this amount and divide it by Nordstrom’s $0.76 dividend: $6,000 / $0.76 = 7,895 shares
So, an investor would need to own approximately $163,584 worth of Nordstrom, or 7,895 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 / $0.76 = 1,579 shares, or $32,717 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.
JWN Price Action: Shares of Nordstrom fell 1.2% to close at $20.72 on Friday.
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