How to Make $500 a Month on Delta Air Lines Stock Ahead of Q2 Earnings Report

Delta Air Lines, Inc. (NYSE:DAL) will release its second quarter financial results before the open of trading on Thursday, July 11.

Analysts expect the Atlanta-based company to report quarterly earnings of $2.37 per share, up from $2.68 per share in the same period a year earlier. Delta Air Lines is expected to report revenue of $15.5 billion, up from $14.61 billion a year earlier, according to data from Benzinga Pro.

On July 3, TD Cowen analyst Helane Becker maintained a buy rating on Delta Air Lines shares and raised her price target from $55 to $61.

With the recent buzz surrounding Delta Air Lines, some investors may be keeping an eye on the company’s potential dividend yield. Delta Air Lines currently has a dividend yield of 1.30% – a quarterly dividend amount of 15 cents per share (60 cents per year).

To calculate how to make $500 per month with Delta Air, let’s start with an annual goal of $6,000 ($500 x 12 months).

We then take that amount and divide it by Delta Air’s dividend of $0.60: $6,000 / $0.60 = 10,000 shares

So an investor would need to own approximately $460,200 worth of Delta Air stock, or 10,000 shares, to generate a monthly dividend income of $500.

Using a more conservative target of $100 per month ($1,200 per year), we do the same math: $1,200 / $0.60 = 2,000 shares, or $92,040, which would generate a monthly dividend income of $100.

See more earnings on DAL

Also read: Top 3 Financial Stocks You’ll Regret Missing in Q3

It is important to remember that the dividend yield can be cyclical because both the dividend payout and the stock price 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, the 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 falls to $40, the dividend yield will increase to 5% ($2/$40).

In addition, the dividend payout itself can also change over time, which can also affect the dividend yield. If a company increases its dividend payout, the dividend yield will increase even if the stock price remains the same. Similarly, if a company reduces its dividend payout, the dividend yield will decrease.

DAL price action: Delta Air shares fell 2.9% to close at $46.02 on Friday.

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This article How to Make $500 a Month on Delta Air Lines Stock Ahead of Its Q2 Earnings Report originally appeared on Benzinga.com