Walt Disney Company (NYSE:DIS) will release earnings results for the third quarter before the opening bell on Wednesday, Aug. 6.
Analysts expect the Burbank, California-based company to report quarterly earnings at $1.44 per share, versus $1.39 per share in the year-ago period. Disney projects to report quarterly revenue at $23.76 billion, compared to $23.16 billion a year earlier, according to data from Benzinga Pro.
With the recent buzz around Disney, some investors may also be eyeing potential gains from the company's dividends. Currently, Disney offers an annual dividend yield of 0.84%. That’s a semi-annual dividend amount of 50 cents per share ($1.00 a year).
To figure out how to earn $500 monthly from Disney, we start with the yearly target of $6,000 ($500 x 12 months).
Next, we take this amount and divide it by Disney's $1.00 dividend: $6,000 / $1.00 = 6,000 shares.
So, an investor would need to own approximately $716,100 worth of Disney, or 6,000 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 / $1.00 = 1,200 shares, or $143,220 to generate a monthly dividend income of $100.
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.
DIS Price Action: Shares of Disney gained by 2.4% to close at $119.35 on Monday.
Analyst Take: On Monday, Morgan Stanley analyst Benjamin Swinburne maintained a Disney rating of Overweight. He also raised the price target from $120 to $140. Evercore ISI Group analyst Vijay Jayant maintained the stock with an Outperform rating. He raised the price target from $134 to $140.
Read More:
Image: Shutterstock
