Aramark ARMK will release earnings results for its fourth quarter, before the opening bell on Monday, Nov. 11.
Analysts expect the Philadelphia-based company to report quarterly earnings at 53 cents per share, down from 64 cents per share in the year-ago period.
Aramark projects to report revenue of $4.46 billion for the recent quarter, compared to $4.9 billion a year earlier, according to data from Benzinga Pro.
On Oct. 29, Aramark Sports & Entertainment announced a partnership with KZ Provisioning to expand services to athletes nationwide.
With the recent buzz around Aramark, some investors may be eyeing potential gains from the company’s dividends too. As of now, Aramark offers an annual dividend yield of 0.98%. That’s a quarterly dividend amount of 9.5 cents per share (38 cents 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 approximately $615,297 or around 15,789 shares. For a more modest $100 per month or $1,200 per year, you would need $123,067 or around 3,158 shares.
To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($0.38 in this case). So, $6,000 / $0.38 = 15,789 ($500 per month), and $1,200 / $0.38 = 3,158 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.
ARMK Price Action: Shares of Aramark fell 0.8% to close at $38.97 on Thursday.
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