Domino’s Pizza, Inc. (DPZ) is gearing up to announce its third-quarter earnings before the market opens on Thursday, October 10th. According to Benzinga Pro, the pizza giant is projected to report revenue of $1.1 billion for the quarter. While analysts anticipate earnings per share of $3.63, down from $4.18 in the same period last year, Domino’s dividend potential might be enticing for investors.
Domino’s currently offers an annual dividend yield of 1.47%, translating to a quarterly dividend of $1.51 per share ($6.04 annually). If you’re seeking a monthly dividend income of $500, you’d need to set a yearly target of $6,000. To achieve this, you’d need to own approximately 993 shares, which equates to roughly $407,130 worth of Domino’s stock.
For a more conservative goal of $100 monthly ($1,200 annually), the required share count drops to 199, representing an investment of around $81,590. It’s important to remember that dividend yield fluctuates over time due to changes in both the dividend payment and the stock price.
The dividend yield is calculated by dividing the annual dividend payment by the current stock price. As the stock price changes, the dividend yield adjusts accordingly. For instance, if a company pays an annual dividend of $2 and its stock price is $50, the dividend yield would be 4%. However, if the stock price rises to $60, the dividend yield decreases to 3.33%. Conversely, if the stock price falls to $40, the yield increases to 5%.
Furthermore, the dividend payment itself can fluctuate. Companies may increase their dividend payments, leading to an increase in dividend yield even if the stock price remains the same. Similarly, a decrease in dividend payments would result in a lower dividend yield.
Domino’s shares experienced a 3.6% decline on Monday, closing at $410. As the company prepares to release its earnings, investors will be watching closely to see how the results impact the stock price and, consequently, the dividend yield.
