How To Earn $500 A Month From HP Stock Ahead Of Q1 Print
HP Inc. (NYSE: HPQ) is expected to release earnings results for the first fiscal quarter ended Jan. 31, 2024, after the closing bell on Wednesday.
Analysts expect the Palo Alto, California-based company to report quarterly earnings at 81 cents per share, up from year-ago earnings of 75 cents per share. HP is projected to post revenue of $13.56 billion, according to data from Benzinga Pro.
On Feb. 14, HSBC analyst Stephen Bersey upgraded HP from Hold to Buy and raised the price target from $30 to $33.
With the recent buzz around HP, some investors may be eyeing potential gains from the company’s dividends too. As of now, HP offers an annual dividend yield of 3.82%, which is a quarterly dividend amount of 27.56 cents per share ($1.102 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 $156,979 or around 5,445 shares. For a more modest $100 per month or $1,200 per year, you would need $31,396 or around 1,089 shares.
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To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($1.102 in this case). So, $6,000 / $1.102 = 5,445 ($500 per month), and $1,200 / $1.102 = 1,089 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.
HPQ Price Action: Shares of HP gained 0.1% to close at $28.83 on Tuesday.
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This article How To Earn $500 A Month From HP Stock Ahead Of Q1 Print originally appeared on Benzinga.com
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