How To Earn $500 A Month From Domino’s Stock Ahead Of Q2 Earnings

Domino’s Pizza, Inc. (NASDAQ: DPZ ) will release its second quarter earnings report before the opening bell on Monday, July 20.

Analysts expect the company to report quarterly earnings of $4.17 per share, up from $3.81 per share in the year-ago period.

The consensus estimate for Domino’s quarterly revenue is $1.18 billion.

It reported $1.15 billion last year, according to Pro.

Ahead of quarterly earnings, Morgan Stanley analyst Brian Harbour, on Thursday, maintained Domino’s with an Equal-Weight rating and lowered the price target from $395 to $370, while Wells Fargo analyst Zachary Fadem maintained the stock with an Equal-Weight rating and slashed the price target from $350 to $325.

With the recent buzz around Domino’s, some investors may be eyeing potential gains from the company’s dividends too.

As of now, Domino’s has an annual dividend yield of 2.41%, which is a quarterly dividend amount of $1.99 per share ($7.96 a year).

So, how can investors use its dividend yield to pocket a regular $500 per month? To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $248,571 or around 754 shares.

For a more modest $100 per month or $1,200 per year, you would need $49,780 or around 151 shares.

To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($7.96 in this case).

So, $6,000 / $7.96 = 754 ($500 per month), and $1,200 / $7.96 = 151 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 jumped 6.1% to close at $329.67 on Thursday.

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