NVIDIA Company (NASDAQ:NVDA) shares closed slightly higher on Tuesday ahead of the earnings report which is expected to be released on Wednesday. Shares of the company have jumped about 20% over the past month, while adding 98% year to date.
Analysts expect the Santa Clara, Calif.-based company to report quarterly earnings of $5.59 per share, up sharply from 98 cents per share a year ago. NVIDIA is expected to post quarterly revenue of $24.65 billion, up from $6.52 billion a year earlier, according to data from Benzinga Pro.
Several analysts raised their price targets on Nvidia before the publication of quarterly results. Baird analyst Tristan Gerra maintained NVIDIA with Outperform, while increasing the price target from $1,050 to $1,200. Stifel analyst Ruben Roy increased the price target from $910 to $1,085, while Susquehanna analyst Christopher Rolland increased the price target from $1,050 to $1,100. Barclays analyst Blayne Curtis also raised the stock’s price target from $850 to $1,100.
With the recent buzz around Nvidia, some investors might be looking at potential gains from the company’s dividends. Currently, Nvidia has a dividend yield of 0.02%, or a quarterly dividend of 4 cents per share (16 cents per year).
To learn how to make $500 per month with Nvidia, we start with the annual goal of $6,000 ($500 x 12 months).
Then we take that amount and divide it by Nvidia’s $0.16 dividend: $6,000 / $0.16 = 37,500 shares.
So, an investor would need to own approximately $35,769,750 of Nvidia, or 37,500 shares, to generate monthly dividend income of $500.
Assuming a more conservative goal of $100 per month ($1,200 per year), we do the same calculation: $1,200 / $0.16 = 7,500 shares, or $7,153,950 to generate monthly dividend income of $100.
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Note that the dividend yield can change continuously, as the dividend payment and stock price both fluctuate over time.
The dividend yield is calculated by dividing the annual dividend payout 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 drops to $40, the dividend yield would increase to 5% ($2/$40).
Additionally, the dividend payout itself may also change over time, which may also impact the dividend yield. If a company increases its dividend payout, the dividend yield will increase even if the stock price stays the same. Likewise, if a company decreases its dividend payout, the dividend yield will decrease.
NVDA Price Action: Nvidia shares gained 0.6% to close at $953.86 on Tuesday.
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This item How to Make $500 a Month From Nvidia Stock Ahead of Q1 Earnings Report originally appeared on Benzinga.com
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