How To Earn $500 A Month From NVIDIA Stock Ahead Of Q2 Earnings Report #NewsUnitedStates

NVIDIA Corporation (NASDAQ:NVDA) is set 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 in the year-ago period. NVIDIA projects to report quarterly revenue of $28.68 billion for the quarter, according to data from Benzinga Pro.

On Tuesday, Truist Securities analyst William Stein maintained NVIDIA with a Buy rating and raised the price target from $140 to $145.

With the recent buzz around NVIDIA, some investors may be eyeing potential gains from the company’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 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 $19,245,000 or around 150,000 shares. For a more modest $100 per month or $1,200 per year, you would need $3,849,000 or around 30,000 shares.

To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($0.04 in this case). So, $6,000 / $0.04 = 150,000 ($500 per month), and $1,200 / $0.04 = 30,000 shares ($100 per month).

View more earnings on NVDA

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.

NVDA Price Action: Shares of Nvidia gained 1.5% to close at $128.30 on Tuesday.

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This article How To Earn $500 A Month From NVIDIA Stock Ahead Of Q2 Earnings Report originally appeared on Benzinga.com

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