Delta Air Lines, Inc. DAL will release its financial results for the second quarter, before the opening bell on Thursday, July 11.
Analysts expect the Atlanta-based company to report quarterly earnings at $2.37 per share, down from $2.68 per share in the year-ago period. Delta Air Lines is expected to post revenue of $15.5 billion, compared to $14.61 billion a year earlier, according to data from Benzinga Pro.
On July 3, TD Cowen analyst Helane Becker maintained Delta Air Lines with a Buy and raised the price target from $55 to $61.
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 has a dividend yield of 1.30% — a quarterly dividend amount of 15 cents a share (60 cents a year).
To figure out how to earn $500 monthly from Delta Air, we start with the yearly target of $6,000 ($500 x 12 months).
Next, we take this amount and divide it by Delta Air's $0.60 dividend: $6,000 / $0.60 = 10,000 shares
So, an investor would need to own approximately $460,200 worth of Delta Air, or 10,000 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 / $0.60 = 2,000 shares, or $92,040 to generate a monthly dividend income of $100.
Also Read: Top 3 Financial Stocks Youll Regret Missing In Q3
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.
DAL Price Action:Shares of Delta Air fell 2.9% to close at $46.02 on Friday.
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