Analysts expect the company to report quarterly earnings of $3.37 per share. That’s up from $2.39 per share in the year-ago period. The consensus estimate for Expedia’s quarterly revenue is $3.41 billion (it reported $3.18 billion last year), according to Benzinga Pro. Truist Securities analyst Greg Miller, on Tuesday, maintained Expedia with a Hold and raised the price target from $210 to $252.
Expedia investors may be eyeing potential gains from the company’s dividends. Currently, the company has an annual dividend yield of 0.68%, which is a quarterly dividend amount of 40 cents per share ($1.60 a year).
So, how can investors exploit its dividend yield to pocket a regular $500 monthly?
To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $876,000 or around 3,750 shares. For a more modest $100 per month or $1,200 per year, you would need $175,200 or around 750 shares.
To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($1.60 in this case). So, $6,000 / $1.60 = 3,750 ($500 per month), and $1,200 / $1.60 = 750 shares ($100 per month).
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: Divide 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.
EXPE Price Action: Shares of Expedia fell by 3.3% to close at $233.60 on Wednesday.
Image: Shutterstock
Recent Comments