How To Earn $500 A Month From Domino's Pizza Stock Ahead Of Q1 Earnings

Domino’s Pizza, Inc. DPZ is scheduled to post earnings results for its first quarter, before the opening bell on April 29, 2024.

Analysts expect the Ann Arbor, Michigan-based company to report quarterly earnings at $3.39 per share, up from $2.93 per share in the year-ago period. Domino’s is projected to report quarterly revenue of $1.08 billion, up from $1.02 billion in the year-earlier quarter, according to data from Benzinga Pro.

On April 16, UBS analyst Dennis Geiger maintained Domino’s Pizza with a Buy and raised the price target from $526 to $570, while Jefferies analyst Andy Barish maintained the stock with a Hold and increased the price target from $455 to $480.

With the recent buzz around Domino’s Pizza, some investors may be eyeing potential gains from the company's dividends. As of now, Domino’s Pizza has a dividend yield of 1.22%, which is a quarterly dividend amount of $1.51 a share ($6.04 a year).

To figure out how to earn $500 monthly from Domino’s, we start with the 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 $491,307 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 $98,459 to generate a monthly dividend income of $100.

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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.

DPZ Price Action: Shares of Domino’s rose 1.5% to close at $494.77 on Thursday.

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Image: Courtesy of Domino’s