Analysts expect the company to report quarterly earnings of $1.74 per share. That’s up from $1.61 per share in the year-ago period. The consensus estimate for SIG’s quarterly revenue is $1.53 billion. It reported $1.54 billion last year, according to Benzinga Pro.
Some SIG, investors may be eyeing potential gains from the company’s dividends. As of now, Signet Jewelers has an annual dividend yield of 1.64%. That’s a quarterly dividend of 35 cents per share ($1.40 a year).
To figure out how to earn $500 monthly from Signet Jewelers, start with the yearly target of $6,000 ($500 x 12 months).
Next, we divide that amount by SIG’s $1.40 dividend: $6,000 / $1.40 = 4,286 shares.
So, an investor would need to own approximately $365,596 worth of Signet Jewelers, or 4,286 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 / $1.40 = 857 shares, or $73,102 to generate a monthly dividend income of $100.
Note that dividend yield can change on a rolling basis, as dividend payments and stock prices 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.
Let’s say 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.
SIG Price Action: Shares of Signet Jewelers gained 4% to close at $85.30 on Friday.
UBS analyst Amit Mehrotra maintained Signet with a Buy on Aug. 24 and raised the price target from $121 to $122.
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