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

Domino’s Pizza, Inc. DPZ will release its financial results for the second quarter, before the opening bell on Thursday.

Analysts expect the Ann Arbor, Michigan-based company to report quarterly earnings at $3.65 per share, up from $3.08 per share in the year-ago period. Domino’s is expected to post revenue of $1.1 billion, compared to $1.07 billion a year earlier, according to data from Benzinga Pro.

On Monday, Wedbush analyst Nick Setyan reiterated Domino’s Pizza with an Outperform rating and maintained a $575 price target.

With the recent buzz around Domino’s, some investors may be eyeing potential gains from the company's dividends. As of now, Domino’s has a dividend yield of 1.23%, 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 $486,421 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 $97,480 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 gained 1.4% to close at $489.85 on Tuesday.

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