How to Make $500 a Month in NVIDIA Stock Ahead of Q2 Earnings Report

NVIDIA Corporation (NASDAQ:NVDA) is set to report its second quarter earnings results after the closing bell on Wednesday.

Analysts expect the Santa Clara, Calif.-based company to report quarterly earnings of 64 cents per share, up sharply from 25 cents per share in the year-ago period. NVIDIA expects 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 his price target to $145 from $140.

With the recent buzz around NVIDIA, some investors may also be eyeing potential gains from the company’s dividends. NVIDIA currently offers an annual dividend yield of 0.03%, which is a quarterly dividend amount of 1 cent per share (4 cents per year).

So how can investors exploit their 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 about $19,245,000 or about 150,000 shares. For a more modest $100 per month or $1,200 per year, you would need $3,849,000 or about 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).

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Keep in mind that the dividend yield can change constantly because the dividend payout and stock price fluctuate over time.

How it works: Dividend yield is calculated by dividing the annual dividend payment by the current share 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 rises to $60, the dividend yield falls to 3.33% ($2/$60). Conversely, if the stock price falls to $40, the dividend yield increases to 5% ($2/$40).

Similarly, changes in dividend payments can affect yield. If a company increases its dividend, the yield will increase, provided the share price remains the same. Conversely, if the dividend payout falls, 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 Make $500 a Month in NVIDIA Stock Ahead of Q2 Earnings Report originally appeared on Benzinga.com

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