Benzinga - by Avi Kapoor, Benzinga Staff Writer.
Darden Restaurants Inc (NYSE: DRI), the company that owns both the Olive Garden and LongHorn Steakhouse brands, posted upbeat earnings for its second quarter (Q2) on Friday, Dec. 15.
For Q2 of 2024, the company reported sales growth of 9.7% year-on-year to $2.727 billion — just shy of the analyst consensus estimate of $2.741 billion. Adjusted EPS of $1.84 beat the consensus estimate of $1.74, according to Benzinga Pro.
With the recent buzz around Darden Restaurants following upbeat earnings, some investors may be eyeing potential gains from the company’s dividends. The company, which also owns The Capital Grille and Yard House, currently has a dividend yield of 3.1%. That's a quarterly dividend amount of $1.31 a share ($5.04 a year).
To figure out how to earn $500 monthly from Darden Restaurants dividends, we start with the yearly target of $6,000 ($500 x 12 months).
Next, we take this amount and divide it by Darden Restaurants' $5.04 dividend: $6,000 / $5.04 = 1,190 shares
So, an investor would need to own approximately $193,363 worth of Darden Restaurants, or 1,190 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 / $5.04 = 238 shares, or $38,673 to generate a monthly dividend income of $100.
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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.
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).
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.
DRI Price Action: Shares of Darden Restaurants fell 0.4% to close at $162.49 on Friday.
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