As Delta Air Lines, Inc. (NYSE:DAL) prepares to unveil its second-quarter earnings on July 10, the aviation giant finds itself at a critical juncture, facing a potential dip in profits amid a backdrop of strategic investments and shifting market dynamics.
Analysts expect the company to report quarterly earnings at $2.03 per share, down from $2.36 per share in the year-ago period. Delta Air Lines projects to report quarterly revenue of $16.18 billion, compared to $16.66 billion a year earlier, according to data from Benzinga Pro.
Delta Air Lines and Korean Air announced on May 9 that they will be purchasing minority stakes worth a combined $550 million in Canadian carrier WestJet.
With the recent buzz around Delta Air Lines, some investors may be eyeing potential gains from the company’s dividends. As of now, Delta Air Lines offers an annual dividend yield of 1.50%, which is a quarterly dividend amount of 18 cents per share (75 cents a year).
So, how can investors capitalize on its dividend yield to earn a regular $500 monthly?
To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $401,040 or around 8,000 shares. For a more modest $100 per month or $1,200 per year, you would need $80,208 or around 1,600 shares.
To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($0.75 in this case). So, $6,000 / $0.75 = 8,000 ($500 per month), and $1,200 / $0.75 = 1,600 shares ($100 per month).
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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.
DAL Price Action: Shares of Delta Air Lines gained 2.3% to close at $50.13 on Wednesday.
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This article How To Earn $500 A Month From Delta Air Lines Stock Ahead Of Q2 Earnings originally appeared on Benzinga.com
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