How to make $500 a month from Domino's Pizza stock ahead of Q1 earnings – Domino's Pizza (NYSE:DPZ)



Would you like to earn 27% every 20 days?

This is the average value of Nic Chahine's option purchases. Don't sell covered calls or spreads…buy options. Most traders don't even have a 27% buy option win rate. His win rate is 83%. Here's how he does it.


Domino's Pizza Co., Ltd. (NYSE:DPZ) is scheduled to report its first quarter results before the opening bell on April 29, 2024.

Analysts expect the Ann Arbor, Michigan-based company to report quarterly earnings of $3.39 per share, up from $2.93 per share in the year-ago period. Domino's Pizza is expected to report quarterly sales of $1.08 billion, up from $1.02 billion a year earlier, according to data from Benzinga Pro.

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On April 16, UBS analyst Dennis Geiger maintained Domino's Pizza stock with a “buy” rating and raised his price target from $526 to $570, while Jefferies analyst Andy Barish He maintained a “hold” rating on the stock and raised his price target from $455 to $480.

The recent buzz surrounding Domino's Pizza may have some investors focused on the company's dividend potential. Domino's Pizza currently has a dividend yield of 1.22%, or a quarterly dividend of $1.51 per share ($6.04 annually).

To understand how to make $500 per month with Domino's Pizza, start with an annual goal of $6,000 ($500 x 12 months).

Then divide this amount by Domino's $6.04 dividend: $6,000 / $6.04 = 993 shares

Therefore, for an investor to earn $500 in dividend income each month, they would need to own approximately $491,307 worth of Domino's Pizza, or 993 shares.

Do the same calculations assuming a more modest goal of $100 per month ($1,200 per year). $1,200 / $6.04 = 199 shares, or $98,459, giving you $100 in monthly dividend income.


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Also Read: Top 3 Financial Stocks That Could Shrink Your Portfolio This Quarter

Keep in mind that dividend yields can change periodically, as dividends and stock prices fluctuate over time.

Dividend yield is calculated by dividing the annual dividend by the current stock price. As the stock price fluctuates, the dividend yield will also fluctuate.

For example, if a stock pays an annual dividend of $2 and the current price is $50, the dividend yield is 4%. 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 increases to 5% ($2/$40).

Additionally, the dividend itself can change over time, which can also affect the dividend yield. If a company increases its dividend, the dividend yield will increase even if the stock price remains the same. Similarly, when a company reduces its dividend payments, its dividend yield also falls.

DPZ price action: Domino's Pizza shares rose 1.5% to close at $494.77 on Thursday.

Read more: Insiders bought GlucoTrack and 2 other stocks under $1

Image: Courtesy of Domino's Pizza


Would you like to earn 27% every 20 days?

This is the average value of Nic Chahine's option purchases. Don't sell covered calls or spreads…buy options. Most traders don't even have a 27% buy option win rate. His win rate is 83%. Here's how he does it.


© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.



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