Investors are increasingly turning their attention to dividend stocks as a reliable income source amid turbulent market conditions. The focus on generating consistent returns has intensified as economic uncertainties make fixed income streams more appealing.
Analysts expect the company to report quarterly earnings at $1.18 per share, down from $2.77 per share in the year-ago period. Oxford Industries is projected to report quarterly revenue of $406.12 million, compared to $419.89 million a year earlier, according to data from Benzinga Pro.
On Sept. 5, Telsey Advisory Group analyst Dana Telsey maintained Oxford Industries with a Market Perform rating and maintained a $52 price target.
With the recent buzz around Oxford Industries, some investors may be eyeing potential gains from the company’s dividends too. As of now, Oxford Industries offers an annual dividend yield of 6.80%, which is a quarterly dividend amount of 69 cents per share ($2.76 a year).
So, how can investors exploit its dividend yield to pocket a regular $500 monthly?
To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $88,286 or around 2,174 shares. For a more modest $100 per month or $1,200 per year, you would need $17,665 or around 435 shares.
To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($2.76 in this case). So, $6,000 / $2.76 = 2,174 ($500 per month), and $1,200 / $2.76 = 435 shares ($100 per month).
Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.
How that works: The dividend yield is computed by dividing the annual dividend payment by the stock’s current price.
For example, if a stock pays an annual dividend of $2 and is currently priced at $50, the dividend yield would be 4% ($2/$50). However, if the stock price increases to $60, the dividend yield drops to 3.33% ($2/$60). Conversely, if the stock price falls to $40, the dividend yield rises to 5% ($2/$40).
Similarly, changes in the dividend payment can impact the yield. If a company increases its dividend, the yield will also increase, provided the stock price stays the same. Conversely, if the dividend payment decreases, so will the yield.
OXM Price Action: Shares of Oxford Industries fell 3.6% to close at $40.61 on Monday.
