Delta Air Lines, Inc. (NYSE:DAL) will release earnings results for the third quarter before the opening bell on Thursday, Oct. 9.
Analysts expect the Atlanta-based company to report quarterly earnings at $1.53 per share, up from $1.50 per share in the year-ago period. Delta projects quarterly revenue of $15.94 billion, compared to $15.68 billion in the same quarter a year earlier, according to data from Benzinga Pro.
With the recent buzz around Delta, some investors may be eyeing potential gains from the company's dividends. Currently, Delta offers an annual dividend yield of 1.29%. That’s a quarterly dividend amount of 19 cents per share (75 cents a year).
To figure out how to earn $500 monthly from Delta, we start with the yearly target of $6,000 ($500 x 12 months).
Next, we take this amount and divide it by Delta's $0.75 dividend: $6,000 / $0.75 = 8,000 shares.
So, an investor would need to own approximately $466,080 worth of Delta, or 8,000 shares, to generate a monthly dividend income of $500.
Assuming a more conservative goal of $100 monthly ($1,200 annually), perform the same calculation: $1,200 / $0.75 = 1,600 shares, or $93,216 to generate a monthly dividend income of $100.
Note that dividend yield can change on a rolling basis; the dividend payment and the stock price 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.
DAL Price Action: Shares of Delta Air Lines gained by 1.8% to close at $58.26 on Monday.
On Oct. 3, Susquehanna analyst Christopher Stathoulopoulos maintained Delta Air with a Positive rating and raised the price target from $65 to $68.
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