NVIDIA Corporation (NVDA) is poised to release its earnings results for the second quarter after the closing bell on Wednesday. Analysts predict a significant jump in quarterly earnings, projecting 64 cents per share compared to 25 cents in the same period last year. The company is also expected to report revenue of $28.68 billion for the quarter, according to data from Benzinga Pro.
The recent buzz surrounding NVIDIA has sparked interest in its dividend potential among investors. However, NVIDIA currently offers an annual dividend yield of only 0.03%, translating to a quarterly dividend of 1 cent per share (4 cents annually). While modest, some investors may seek to exploit this yield for regular income.
To earn $500 per month, or $6,000 annually, solely from dividends, an investment of approximately $19,245,000 would be required, equivalent to about 150,000 shares. For a more modest goal of $100 per month, or $1,200 per year, an investment of $3,849,000 would be necessary, representing roughly 30,000 shares.
The calculation involves dividing the desired annual income by the dividend amount. For instance, $6,000 divided by $0.04 (the annual dividend) equals 150,000 shares for a monthly income of $500. Similarly, $1,200 divided by $0.04 yields 30,000 shares for a monthly income of $100.
It’s crucial to note that dividend yield is subject to change over time due to fluctuations in both dividend payments and stock prices. The dividend yield is calculated by dividing the annual dividend payment by the current stock price. For example, a stock paying an annual dividend of $2 priced at $50 would have a 4% dividend yield ($2/$50). However, if the stock price rises to $60, the dividend yield drops to 3.33% ($2/$60). Conversely, if the stock price falls to $40, the yield increases to 5% ($2/$40).
Similarly, adjustments to dividend payments can also impact the yield. An increase in dividend payments will boost the yield, assuming the stock price remains constant. Conversely, a decrease in dividend payments will lead to a decline in the yield.
NVIDIA’s stock price closed at $128.30 on Tuesday, reflecting a 1.5% gain. As investors eagerly await the company’s earnings release, the potential for dividend income remains a factor in their investment strategies.
