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NVIDIA Corporation (NASDAQ:NVDA) stock closed lower on Monday after posting a recent rally.
The company’s stock has risen about 19% in the past month and is up 78% year-to-date. On March 7, Mizuho analyst Vijay Rakesh maintained his rating on NVIDIA as “buy” and raised his price target from $850 to $1,000.
NVIDIA was recently sued by three authors for allegedly using their copyrighted works without permission to train their AI platform. The lawsuit was filed Friday in San Francisco federal court by the authors. Brian Keene, Abdi Nazemian, stewart ornanReuters reported.
Given the recent buzz surrounding NVIDIA, some investors may also be looking at the company’s dividend potential. NVIDIA currently has an annual dividend yield of 0.02% and a quarterly dividend of 4 cents per share (16 cents annually).
So how can investors take advantage of that dividend yield to get their regular $500 every month?
To earn $500 per month or $6,000 per year in dividends alone, you would need to invest approximately $32,165,250 or approximately 37,500 shares. At a more modest $100 per month or $1,200 per year, you would need $6,433,050 or approximately 7,500 shares.
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To calculate: Divide your desired annual salary ($6,000 or $1,200) by the dividend (in this case, $0.16). So $6,000 / $0.16 = 37,500 shares ($500 per month) and $1,200 / $0.16 = 7,500 shares ($100 per month).
Keep in mind that dividend yields can change periodically, as dividends and stock prices fluctuate over time.
How it works: Dividend yield is calculated by dividing the annual dividend by the stock price.
For example, if a stock pays an annual dividend of $2 and the current price is $50, the dividend yield is 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 increases to 5% ($2/$40).
Similarly, changes in dividends can also affect yields. If a company increases its dividend, the yield will also increase if the stock price remains the same. Conversely, if the dividend decreases, the yield will also decrease.
NVDA Price Action: Nvidia stock fell 2% to close at $857.74 on Monday.
Then read this: Cramer says this health care stock could rise further, calls Manhattan Associates a ‘winner’
Photo: Shutterstock
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This article, “How to make $500 a month with NVIDIA stock” originally appeared on Benzinga.com.
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