Analysts expect the company to report quarterly earnings of $6.17 per share. That’s down from $6.56 per share in the year-ago period. The consensus estimate for Vail Resorts' quarterly revenue is $1.11 billion (it reported $1.14 billion last year), according to Benzinga Pro.
Jefferies analyst David Katz upgraded Vail Resorts from Hold to Buy on Jan. 13 and raised the price target from $159 to $165.
With the recent buzz around Vail Resorts, some investors may be eyeing potential gains from the company's dividends too. As of now, Vail Resorts has an annual dividend yield of 6.33%, which is a quarterly dividend amount of $2.22 per share ($8.88 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 $94,809 or around 676 shares. For a more modest $100 per month or $1,200 per year, you would need $18,934 or around 135 shares.
To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($8.88 in this case). So, $6,000 / $8.88 = 676 ($500 per month), and $1,200 / $8.88 = 135 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.
MTN Price Action: Shares of Vail Resorts gained 2.9% to close at $140.25 on Wednesday.
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