Target company (NYSE:TGT) will publish its third quarter results, before opening bell on Wednesday, November 20.

Some investors may be eyeing potential gains from the Minneapolis-based company’s dividends. Target currently offers an annual dividend yield of 2.86%. This represents a quarterly dividend of $1.12 per share ($4.48 per year).

To learn how to make $500 per month with Target, we start with the annual goal of $6,000 ($500 x 12 months). Then we take that amount and divide it by Target’s $4.48 dividend: $6,000 / $4.48 = 1,339 shares.

So, an investor would need to own approximately $209,634 of Target, or 1,339 shares, to generate monthly dividend income of $500.

Assuming a more conservative goal of $100 per month ($1,200 per year), we do the same calculation: $1,200 / $4.48 = 268 shares, or $41,958 to generate monthly dividend income of 100 $.

The dividend yield may change on an ongoing basis; Both the dividend payment and the stock price fluctuate over time.

The dividend yield is calculated by dividing the annual dividend payout by the current stock price. As the stock price changes, the dividend yield will also change.

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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 drops to $40, the dividend yield would increase to 5% ($2/$40).

Additionally, the dividend payout itself may also change over time, which may also impact the dividend yield. If a company increases its dividend payout, the dividend yield will increase even if the stock price stays the same. Likewise, if a company decreases its dividend payout, the dividend yield will decrease.

Price action: Target shares gained 2.9% to close at $156.56 on Monday.

Analysts expect Target to report quarterly earnings of $2.30 per share. That’s up from $2.10 per share a year ago. The retailer expects to report quarterly revenue of $25.9 billion, up from $25.4 billion a year earlier, according to data from Benzinga Pro.

On November 13, Telsey Advisory Group analyst Joseph Feldman upgraded Target with an outperform rating and maintained a $195 price target.

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This item How to Make $500 a Month From Target Stock Ahead of Q3 Earnings originally appeared on Benzinga.com

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