Applied Materials, Inc. (NASDAQ:AMAT) will release earnings for its second quarter after the closing bell on Thursday, May 14.
Analysts expect the company to report quarterly earnings of $2.68 per share, up from $2.39 per share in the year-ago period. The consensus estimate for Applied Materials’ quarterly revenue is $7.69 billion (it reported $7.1 billion last year), according to Benzinga Pro.
Ahead of quarterly earnings, Citigroup analyst Atif Malik, on Tuesday, maintained a Buy rating on Applied Materials and raised the price target from $420 to $520.
With the recent buzz around Applied Materials, some investors may be eyeing potential gains from the company’s dividends too. As of now, Applied Materials has an annual dividend yield of 0.49%, which is a quarterly dividend amount of 53 cents per share ($2.12 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 $1,220,296 or around 2,830 shares. For a more modest $100 per month or $1,200 per year, you would need $244,059 or around 566 shares.
View more earnings on AMAT
To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($2.12 in this case). So, $6,000 / $2.12 = 2,830 ($500 per month), and $1,200 / $2.12 = 566 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.
AMAT Price Action: Shares of Applied Materials fell 2.8% to close at $431.20 on Tuesday.
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This article How To Earn $500 A Month From Applied Materials Stock Ahead Of Q2 Earnings originally appeared on Benzinga.com
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