Marriott International, Inc. (NASDAQ:MAR) will release its second-quarter earnings report before the opening bell on Monday, Aug. 3.
Analysts expect the company to report quarterly earnings of $3.08 per share, up from $2.65 per share in the year-ago period. The consensus estimate for Marriott’s quarterly revenue is $7.19 billion. It reported $6.74 billion last year, according to Benzinga Pro.
Barclays analyst Brandt Montour, on July 21, maintained Marriott International with an Equal-Weight rating and raised the price target from $376 to $379, while TD Cowen analyst Kevin Kopelman maintained the stock with a Buy and increased the price target from $410 to $420.
With the recent buzz around Marriott, some investors may be eyeing potential gains from the company’s dividends too. As of now, Marriott has an annual dividend yield of 0.78%, which is a quarterly dividend amount of 73 cents per share ($2.92 a year).
So, how can investors use 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 $771,611 or around 2,055 shares. For a more modest $100 per month or $1,200 per year, you would need $154,322 or around 411 shares.
To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($2.92 in this case). So, $6,000 / $2.92 = 2,055 ($500 per month), and $1,200 / $2.92 = 411 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: 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.
MAR Price Action: Shares of Marriott fell 1.5% to close at $375.48 on Thursday.
Photo by gerd-harder via Shutterstock
Recent Comments