Analysts expect the Ann Arbor, Michigan-based company to report quarterly earnings at $4.05 per share. That’s an increase from $3.58 per share in the year-ago period. Domino’s projects to report quarterly revenue at $1.12 billion, compared to $1.08 billion a year earlier, according to data from Benzinga Pro.
On Wednesday, Baird analyst David Tarantino maintained Domino’s Pizza with an Outperform rating and raised the price target from $500 to $535.
With the recent buzz around Domino’s, some investors may be eyeing potential gains from the company's dividends. Currently, Domino’s offers an annual dividend yield of 1.43% and a quarterly dividend of $1.74 per share ($6.96 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 $420,630 or around 862 shares. For a more modest $100 per month or $1,200 per year, you would need $83,931 or around 172 shares.
To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($6.96 in this case). So, $6,000 / $6.96 = 862 ($500 per month), and $1,200 / $6.96 = 172 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.
DPZ Price Action: Shares of Domino’s gained 0.4% to close at $487.97 on Thursday.
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