Analysts expect the Pittsburgh, Pennsylvania-based company to report quarterly earnings at 51 cents per share, down from 61 cents per share in the year-ago period. American Eagle projects quarterly revenue of $1.6 billion, compared to $1.68 billion a year earlier, according to data from Benzinga Pro.
On Jan. 13, American Eagle Outfitters raised its fourth-quarter operating profit outlook.
With the recent buzz around American Eagle, some investors may be eyeing potential gains from the company’s dividends too. As of now, American Eagle offers an annual dividend yield of 4.35%, which is a quarterly dividend amount of 13 cents per share ($0.50 a year).
To figure out how to earn $500 monthly from American Eagle, we start with the yearly target of $6,000 ($500 x 12 months).
Next, we take this amount and divide it by American Eagle’s $0.50 dividend: $6,000 / $0.50 = 12,000 shares.
So, an investor would need to own approximately $137,880 worth of American Eagle, or 12,000 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 / $0.50 = 2,400 shares, or $27,576 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.
AEO Price Action: Shares of American Eagle fell by 5% to close at $11.49 on Tuesday.
