KeyCorp Earnings Preview: Dividend Potential and Stock Outlook
KeyCorp (KEY) is gearing up to unveil its third-quarter earnings before the market opens on Thursday, October 17th. While analysts anticipate a decline in earnings compared to the same period last year, there’s a growing interest in the company’s dividend potential.
Earnings Expectations and Analyst Sentiment
Analysts are predicting KeyCorp to report quarterly earnings of 15 cents per share, a significant drop from the 29 cents per share recorded in the year-ago period. Revenue is projected to reach $1.27 billion for the recent quarter, down from $1.56 billion a year earlier. This downward trend reflects the current economic climate and its impact on the banking sector.
However, Baird analyst David George recently downgraded KeyCorp from Outperform to Neutral, lowering the price target from $18 to $17. This move suggests a cautious outlook on the company’s near-term prospects.
Dividend Income Potential
Despite the earnings outlook, KeyCorp currently offers an attractive annual dividend yield of 4.62%. This translates to a quarterly dividend payment of 20.5 cents per share, totaling 82 cents a year.
For investors seeking passive income, KeyCorp’s dividend presents a compelling opportunity. To achieve a monthly dividend income of $500, an investor would need to own approximately 7,317 shares, representing a total investment of roughly $129,584.
If a more conservative goal of $100 monthly dividend income is desired, the required investment would be significantly lower, requiring 1,463 shares, equivalent to $25,910.
It’s important to remember that dividend yields can fluctuate over time as both the dividend payment and the stock price are subject to change.
KeyCorp Price Action
KeyCorp shares experienced a slight uptick on Wednesday, gaining 1.2% to close at $17.71. Investors are likely monitoring the upcoming earnings release for clues about the company’s future performance.
Conclusion
While KeyCorp’s earnings outlook might be subdued, its substantial dividend yield remains a key attraction for income-seeking investors. The upcoming earnings report will provide valuable insights into the company’s future trajectory, potentially influencing both the stock price and the dividend yield.
