How To Earn $500 A Month From Marriott Stock Ahead Of Q3 Earnings

Benzinga Earnings10-30 20:20

Marriott International Inc (NASDAQ:MAR) will release its third-quarter earnings report before the opening bell on Monday, Nov. 2.

Analysts expect the company to report quarterly earnings of $2.85 per share, up from $2.47 per share in the year-ago period. The consensus estimate for Marriott’s quarterly revenue is $6.92 billion. It reported $6.49 billion last year, according to Benzinga Pro.

Morgan Stanley analyst Stephen Grambling maintained an Overweight rating on Marriott on Oct. 22 and raised the price target from $384 to $403.

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 0.73%, with a quarterly dividend of 73 cents per share ($2.92 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 about $821,281, or around 2,055 shares. For a more modest $100 per month or $1,200 per year, you would need $164,256 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 shares ($500 per month), and $1,200 / $2.92 = 411 shares ($100 per month).

Note that dividend yield can change on a rolling basis, as dividend payments and stock prices 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 trades at $50, the dividend yield is 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 dividend payments can affect 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, the yield will also decrease.

MAR Price Action: Marriott shares gained 1.3% to close at $399.65 on Thursday.

Photo via Shutterstock

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