Darden Restaurants, Inc. DRI will launch revenues for the very first quarter, before the opening bell on Thursday, Sept. 18.
Experts anticipate the business, which owns brand names like Olive Garden and LongHorn Steakhouse, to report quarterly revenues at $2.01 per share. That’s up from $1.75 per share in the year-ago duration. Darden tasks quarterly profits of $3.04 billion, compared to $2.76 billion a year previously, according to information from Benzinga Pro.
With the current buzz around Darden, some financiers might be considering possible gains from the business’s dividends. The business presently uses a yearly dividend yield of 2.83%, which is a semi-annual dividend quantity of $1.50 per share ($ 6.00 a year).
So, how can financiers exploit its dividend yield to pocket a routine $500 month-to-month?
To make $500 each month or $6,000 every year from dividends alone, you would require a financial investment of around $212,160 or around 1,000 shares. For a more modest $100 each month or $1,200 each year, you would require $42,432 or around 200 shares.
To determine: Divide the wanted yearly earnings ($ 6,000 or $1,200) by the dividend ($ 6.00 in this case). So, $6,000/ $6.00 = 1,000 ($ 500 each month), and $1,200/ $6.00 = 200 shares ($ 100 each month).
Keep in mind that dividend yield can alter on a rolling basis, as the dividend payment and the stock rate both change in time.
How that works: The dividend yield is calculated by dividing the yearly dividend payment by the stock’s existing rate.
For instance, if a stock pays a yearly dividend of $2 and is presently priced at $50, the dividend yield would be 4% ($ 2/$ 50). Nevertheless, if the stock rate increases to $60, the dividend yield drops to 3.33% ($ 2/$ 60). Alternatively, if the stock rate is up to $40, the dividend yield increases to 5% ($ 2/$ 40).
Likewise, modifications in the dividend payment can affect the yield. If a business increases its dividend, the yield will likewise increase, supplied the stock rate remains the very same. Alternatively, if the dividend payment reduces, so will the yield.
DRI Cost Action: Shares of Darden Restaurants fell 0.2% to close at $212.16 on Monday.
On Sept. 12, Stephens & & Co. expert Jim Salera preserved Darden with an Equal-Weight ranking and raised the rate target from $212 to $215.
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