Domino’s Pizza, Inc. (NYSE:DPZ) will release earnings results for its third quarter before the opening bell on Thursday, Oct. 10.
According to data from Benzinga Pro, the Ann Arbor, Michigan-based company projects to report revenue of $1.1 billion for the recent quarter. Analysts expect the fast food chain to report quarterly earnings at $3.63 per share. That’s down from $4.18 per share in the year-ago period.
With the recent buzz around Domino’s Pizza, some investors may be eyeing potential gains from the company’s dividends too. As of now, Domino’s offers an annual dividend yield of 1.47%, which is a quarterly dividend amount of $1.51 per share ($6.04 a year).
To earn $500 monthly from Domino’s, start with a yearly target of $6,000 ($500 x 12 months).
Next, we take this amount and divide it by Domino’s $6.04 dividend: $6,000 / $6.04 = 993 shares
So, an investor would need to own approximately $407,130 worth of Domino’s, or 993 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 / $6.04 = 199 shares, or $81,590 to generate a monthly dividend income of $100.
View more earnings on DPZ
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.
Price Action: Shares of Domino’s fell by 3.6% to close at $410 on Monday.
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Image: Domino’s
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This article How To Earn $500 A Month From Domino’s Pizza Stock Ahead Of Q3 Earnings Results originally appeared on Benzinga.com
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