How To Earn $500 A Month From Darden Restaurants Stock Ahead Of Q1 Earnings

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How To Earn $500 A Month From Darden Restaurants Stock Ahead Of Q1 Earnings
How To Earn $500 A Month From Darden Restaurants Stock Ahead Of Q1 Earnings

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Darden Restaurants, Inc. (NYSE:DRI) will release earnings results for its fiscal 2025 first quarter, before the opening bell on Thursday.

Analysts expect the Orlando, Florida-based company to report quarterly earnings at $1.84 per share, up from $1.78 per share in the year-ago period. Darden Restaurants projects to report quarterly revenue of $2.8 billion for the quarter. according to data from Benzinga Pro.

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On July 17, Chuy’s Holdings Inc (NASDAQ:CHUY) and Darden Restaurants jointly announced that Darden will acquire Chuy’s Holdings.

With the recent buzz around Darden Restaurants, some investors may be eyeing potential gains from the company's dividends. As of now, Darden Restaurants has a dividend yield of 3.47%, which is a quarterly dividend amount of $1.40 a share ($5.60 a year).

To figure out how to earn $500 monthly from Darden Restaurants, we start with the yearly target of $6,000 ($500 x 12 months).

Next, we take this amount and divide it by Darden's $5.60 dividend: $6,000 / $5.60 = 1,071 shares

So, an investor would need to own approximately $172,999 worth of Darden Restaurants, or 1,071 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 / $5.60 = 214 shares, or $34,567 to generate a monthly dividend income of $100.

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.

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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.

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This article How To Earn $500 A Month From Darden Restaurants Stock Ahead Of Q1 Earnings originally appeared on Benzinga.com

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