Analysts expect the fast food company to report quarterly earnings at 20 cents per share. That’s down from 25 cents per share in the year-ago period. The consensus estimate for Wendy’s quarterly revenue is $534.51 million. Benzinga Pro shows higher quarterly revenue, $566.74 million, last year around this time.
With the recent buzz around Wendy’s, some investors may be eyeing potential gains from the company's dividends too. As of now, Wendy’s offers an annual dividend yield of 6.17%, which is a quarterly dividend amount of 14 cents per share (56 cents a year).
To figure out how to earn $500 monthly from Wendy’s, we start with the yearly target of $6,000 ($500 x 12 months).
Next, we take this amount and divide it by Wendy’s $0.56 dividend: $6,000 / $0.56 = 10,714 shares.
So, an investor would need to own approximately $97,283 worth of Wendy’s, or 10,714 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 / $0.56 = 2,143 shares, or $19,458 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.
WEN Price Action: Shares of Wendy’s rose by 2.1% to close at $9.08 on Wednesday.
On Oct. 31, Stifel analyst Chris O’Cull maintained Wendy’s with a Hold and lowered the price target from $12 to $11.
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