Delta Air Lines, Inc. (NYSE:DAL) will release its first-quarter financial results before the opening bell on Wednesday, April 9.
Analysts expect the company to report quarterly earnings at 39 cents per share, down from 45 cents per share in the year-ago period. Delta Air Lines projects quarterly revenue of $13.46 billion, compared to $13.75 billion a year earlier, according to data from Benzinga Pro.
On Monday, UBS analyst Thomas Wadewitz downgraded Delta from Buy to Neutral. He also lowered the price target from $77 to $42. Susquehanna analyst Christopher Stathoulopoulos maintained the stock with a Positive rating and slashed the price target from $80 to $50.
With the recent buzz around Delta Air Lines, some investors may be eyeing potential gains from the company’s dividends too. As of now, Delta Air Lines offers an annual dividend yield of 1.61%. That’s a quarterly dividend amount of 15 cents per share (60 cents a year).
To figure out how to earn $500 monthly from Delta Air Lines, we start with the yearly target of $6,000 ($500 x 12 months).
Next, we take this amount and divide it by Delta’s $0.60 dividend: $6,000 / $0.60 = 10,000 shares.
So, an investor would need to own approximately $372,900 worth of Delta Air Lines, 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 $74,580 to generate a monthly dividend income of $100.
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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.
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 Lines gained by 0.1% to close at $37.29 on Monday.
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