As Levi Strauss & Co. (NYSE:LEVI) prepares to unveil its second-quarter earnings on July 10, the iconic denim brand finds itself at a pivotal moment, navigating both market challenges and strategic changes. This earnings report will not only provide insight into Levi’s financial health but also influence its appeal to dividend-seeking investors, as the company currently offers a competitive yield amid a fluctuating retail landscape.
Analysts expect the company to report quarterly earnings at 13 cents per share, down from 16 cents per share in the year-ago period. Levi Strauss projects to report quarterly revenue of $1.37 billion, compared to $1.44 billion in the same quarter a year earlier, according to data from Benzinga Pro.
On May 20, Levi Strauss entered into a definitive agreement to sell Dockers® to Authentic Brands Group.
With the recent buzz around Levi Strauss, some investors may also be eyeing potential gains from the company’s dividends. As of now, Levi Strauss offers an annual dividend yield of 2.81%, which is a quarterly dividend amount of 13 cents per share (52 cents a year).
To figure out how to earn $500 monthly from Levi Strauss, we start with the yearly target of $6,000 ($500 x 12 months).
Next, we take this amount and divide it by Levi Strauss $0.52 dividend: $6,000 / $0.52 = 11,538 shares.
So, an investor would need to own approximately $225,568 worth of Levi Strauss, or 11,538 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 / $0.52 = 2,308 shares, or $45,121 to generate a monthly dividend income of $100.
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 gained by 2.3% to close at $19.55 on Monday.
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