NVIDIA Corporation (NASDAQ:NVDA) is about to release earnings results for its second quarter, after the closing bell on Wednesday.
Analysts expect the Santa Clara, California-based company to report quarterly earnings at 64 cents per share, up sharply from 25 cents per share within the year-ago period. NVIDIA projects to report quarterly revenue of $28.68 billion for the quarter, in line with data from Benzinga Pro.
On Tuesday, Truist Securities analyst William Stein maintained NVIDIA with a Buy rating and raised the value goal from $140 to $145.
With the recent buzz around NVIDIA, some investors could also be eyeing potential gains from the corporate’s dividends too. As of now, NVIDIA offers an annual dividend yield of 0.03%, which is a quarterly dividend amount of 1 cent per share (4 cents a 12 months).
So, how can investors exploit its dividend yield to pocket an everyday $500 monthly?
To earn $500 per thirty days or $6,000 annually from dividends alone, you would want an investment of roughly $19,245,000 or around 150,000 shares. For a more modest $100 per thirty days or $1,200 per 12 months, you would want $3,849,000 or around 30,000 shares.
To calculate: Divide the specified annual income ($6,000 or $1,200) by the dividend ($0.04 on this case). So, $6,000 / $0.04 = 150,000 ($500 per thirty days), and $1,200 / $0.04 = 30,000 shares ($100 per thirty days).
Note that dividend yield can change on a rolling basis, because the dividend payment and the stock price each fluctuate over time.
How that works: The dividend yield is computed by dividing the annual dividend payment by the stock’s current price.
For instance, if a stock pays an annual dividend of $2 and is currently priced at $50, the dividend yield can be 4% ($2/$50). Nevertheless, if the stock price increases to $60, the dividend yield drops to three.33% ($2/$60). Conversely, if the stock price falls to $40, the dividend yield rises to five% ($2/$40).
Similarly, changes within the dividend payment can impact the yield. If an organization increases its dividend, the yield may also increase, provided the stock price stays the identical. Conversely, if the dividend payment decreases, so will the yield.
NVDA Price Motion: Shares of Nvidia gained 1.5% to shut at $128.30 on Tuesday.
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This text How To Earn $500 A Month From NVIDIA Stock Ahead Of Q2 Earnings Report originally appeared on Benzinga.com
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