How To Earn $500 A Month From KB Home Stock After Upbeat Earnings

KB Home KBH recently reported better-than-expected earnings for its third quarter.

The company reported a third-quarter FY23 sales decline of 13.9% year-on-year to $1.59 billion, beating the analyst consensus of $1.48 billion. EPS of $1.80 beat the analyst consensus of $1.43.

Homes delivered in the quarter decreased 7% to 3,375, and the average selling price fell 8.3% to $466,300.

With KB Home reporting upbeat earnings, some investors may be eyeing potential gains from the company’s dividends. As of now, KB Home has a dividend yield of 1.73%, which is a quarterly dividend amount of $0.20 a share ($0.80 a year).

To figure out how to earn $500 monthly from KB Home dividends, we start with the yearly target of $6,000 ($500 x 12 months).

Next, we take this amount and divide it by KB Home’s $0.80 dividend: $6,000 / $0.80 = 7,500 shares

So, an investor would need to own approximately $346,500 worth of KB Home, or 7,500 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 / 0.80 = 1,500 shares, or $69,300 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.

KBH Price Action: Shares of KB Home rose 0.4% to close at $46.20 on Friday.

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