How To Earn $500 A Month From NetApp Stock Ahead Of Q3 Earnings
NetApp, Inc. (NASDAQ: NTAP) is set to release earnings results for its third quarter, after the closing bell on Thursday.
Analysts expect the San Jose, California-based company to report quarterly earnings at $1.69 per share, down from year-ago earnings of $1.37 per share. NetApp is projected to post revenue of $1.59 billion for the latest quarter, according to data from Benzinga Pro.
NetApp, during November, posted second-quarter adjusted earnings of $1.58 per share, beating market estimates of $1.39 per share. The company’s quarterly sales came in at $1.56 billion versus expectations of $1.53 billion.
With the recent buzz around NetApp, some investors may be eyeing potential gains from the company’s dividends. As of now, NetApp has a dividend yield of 2.27%, which is a quarterly dividend amount of 50 cents a share ($2.00 a year).
To figure out how to earn $500 monthly from NetApp dividends, we start with the yearly target of $6,000 ($500 x 12 months).
Next, we take this amount and divide it by NetApp’s $2.00 dividend: $6,000 / $2.00 = 3,000 shares
So, an investor would need to own approximately $264,090 worth of NetApp, or 3,000 shares to generate a monthly dividend income of $500.
Assuming a more conservative goal of $100 monthly ($1,200 annually), we do the same calculation: $1,200 / $2.00 = 600 shares, or $52,818 to generate a monthly dividend income of $100.
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Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.
The dividend yield is calculated by dividing the annual dividend payment by the current stock price. As the stock price changes, the dividend yield will also change.
For example, if a stock pays an annual dividend of $2 and its current price is $50, its dividend yield would be 4%. However, if the stock price increases to $60, the dividend yield would decrease to 3.33% ($2/$60).
Conversely, if the stock price decreases to $40, the dividend yield would increase to 5% ($2/$40).
Further, the dividend payment itself can also change over time, which can also impact the dividend yield. If a company increases its dividend payment, the dividend yield will increase even if the stock price remains the same. Similarly, if a company decreases its dividend payment, the dividend yield will decrease.
NTAP Price Action: Shares of NetApp gained 1% to close at $88.03 on Wednesday.
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This article How To Earn $500 A Month From NetApp Stock Ahead Of Q3 Earnings originally appeared on Benzinga.com
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