Dell Technologies Inc. (NYSE:DELL) will release its first-quarter earnings results after the closing bell on Thursday, May 29.
Analysts expect the Texas-based company to report quarterly earnings at $1.69 per share, up from $1.27 per share in the year-ago period. According to data from Benzinga Pro, Dell projects quarterly revenue at $23.19 billion, compared to $22.24 billion a year earlier.
On May 23, Evercore ISI Group analyst Amit Daryanani maintained Dell with an Outperform rating and raised the price target from $120 to $140.
With the recent buzz around Dell, some investors may be eyeing potential gains from the company’s dividends too. As of now, Dell offers an annual dividend yield of 1.85%, which is a quarterly dividend amount of 53 cents per share ($2.10 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 $325,041 or around 2,857 shares. For a more modest $100 per month or $1,200 per year, you would need $64,963 or around 571 shares.
To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($2.10 in this case). So, $6,000 / $2.10 = 2,857 ($500 per month), and $1,200 / $2.10 = 571 shares ($100 per month).
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Note that dividend yield can change on a rolling basis, as the dividend payment and 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.
DELL Price Action: Shares of Dell fell 0.2% to close at $113.77 on Wednesday.
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