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NVIDIA Corporation (NASDAQ:NVDA) stock closed slightly higher during trading on Monday.
The company is expected to report its latest quarterly results next month, with analysts expecting quarterly earnings of $4.50 per share and revenue of $20.18 billion.
Meanwhile, Nvidia is looking to significantly expand its AI chip sales in India through a deal with Indian data center operator Yotta. The $500 million deal brings Nvidia’s total order from Yotta to $1 billion and marks a significant increase in Yotta’s AI cloud services.
sunil guptaYotta’s CEO and co-founder said the order includes approximately 16,000 Nvidia H100 and GH200 AI chips, with delivery expected by March 2025, Reuters reported.
Given the recent buzz surrounding Nvidia, some investors may be focused on the potential return from the company’s dividend. Currently, Nvidia has a dividend yield of 0.03%, with a quarterly dividend of 4 cents per share (16 cents annually).
To understand how to make $500 per month from Nvidia dividends, start with an annual goal of $6,000 ($500 x 12 months).
Then divide this amount by Nvidia’s $0.16 dividend: $6,000 / $0.16 = 37,500 shares
Therefore, for an investor to earn $500 in dividend income per month, they would need to own approximately $22,370,250 worth of Nvidia, or 37,500 shares.
Do the same calculations assuming a more modest goal of $100 per month ($1,200 per year). To generate $100 in dividend income per month, $1,200 / $0.16 = 7,500 shares, or $4,474,050.
See more earnings at NVDA
Also Read: Top 4 Consumer Stocks That Could Collapse This Month
Keep in mind that dividend yields can change periodically, as dividends and stock prices fluctuate over time.
Dividend yield is calculated by dividing the annual dividend by the current stock price. As the stock price fluctuates, the dividend yield will also fluctuate.
For example, if a stock pays an annual dividend of $2 and the current price is $50, the dividend yield is 4%. 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).
Furthermore, the dividend itself can change over time, which can also affect the dividend yield. If a company increases its dividend, the dividend yield will increase even if the stock price remains the same. Similarly, when a company reduces its dividend payments, its dividend yield also falls.
NVDA Price Action: Nvidia stock rose 0.3% to close at $596.54 on Monday.
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This article, “How to make $500 a month with Nvidia stocks” was originally published on Benzinga.com
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