Yum China Holdings, Inc. YUMC — the parent company of KFC, Pizza Hut, and Taco Bell — will release earnings results for its third quarter, before the opening bell on Monday, Nov. 4.
Analysts expect the China-based company to report quarterly earnings at 67 cents per share, up from 59 cents per share in the year-ago period. Yum China projects to report revenue of $3.05 billion for the recent quarter, compared to $2.91 billion a year earlier, according to data from Benzinga Pro.
On Aug. 5, Yum China reported second-quarter results yesterday. Revenue increased 1% year over year to $2.68 billion, missing the consensus of $2.77 billion.
With the recent buzz around Yum China, some investors may be eyeing potential gains from the company's dividends too. As of now, Yum China offers an annual dividend yield of 1.45%, which is a quarterly dividend amount of 16 cents per share (64 cents a year).
So, how can investors exploit its dividend yield to pocket a regular $500 monthly?
To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $413,531 or around 9,375 shares. For a more modest $100 per month or $1,200 per year, you would need $82,706 or around 1,875 shares.
To Calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend (64 cents in this case). So, $6,000 / $0.64 = 9,375 ($500 per month), and $1,200 / $0.64 = 1,875 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.
Price Action: Shares of Yum China fell 1.3% to close at $44.11 on Thursday.
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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