How To Earn $500 A Month From Oxford Industries Stock Ahead Of Q4 Earnings

Oxford Industries, Inc. OXM will release its fourth-quarter financial results after the closing bell on Thursday, March 27.

Analysts expect the company to report quarterly earnings at $1.27 per share, down from $1.90 per share in the year-ago period. Oxford Industries projects quarterly revenue of $383.94 million, compared to $404.43 million a year earlier, according to data from Benzinga Pro.

On Monday, Telsey Advisory Group analyst Dana Telsey maintained Oxford Industries with a Market Perform rating and lowered the price target from $86 to $68.

With the recent buzz around Oxford Industries, some investors may be eyeing potential gains from the company's dividends, too. Currently, Oxford Industries offers an annual dividend yield of 4.34%. That’s a quarterly dividend amount of 67 cents per share ($2.68 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 $138,303 or around 2,239 shares. For a more modest $100 per month or $1,200 per year, you would need $27,673 or around 448 shares.

To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($2.68 in this case). So, $6,000 / $2.68 = 2,239 ($500 per month), and $1,200 / $2.68 = 448 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 gained 0.6% to close at $61.77 on Wednesday.

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