How To Earn $500 A Month From Nvidia Stock After Trump Win

Shares of Nvidia Corporation NVDA settled higher on Wednesday after Donald Trump won the election to become the 47th U.S. president.

The Biden administration imposed an artificial intelligence technology embargo on China, restricting the country's access to sophisticated AI chips from Nvidia, citing national security threats.

Don’t Miss:

• This Jeff Bezos-backed startup will allow you to become a landlord in just 10 minutes, and you only need $100.
• Your biggest returns may not come from the stock market. Invest the way colleges, pension funds, and the 1% do.Benzinga Readers: Earn a 1% return boost on your first EquityMultiple investment when you sign up here (Accredited Investors Only)*.

With the recent buzz around Nvidia ahead of quarterly earnings, some investors may also be eyeing potential gains from the company's dividends. As of now, Nvidia offers an annual dividend yield of 0.03%. That’s a quarterly dividend amount of 1 cent per share (4 cents a year).

To figure out how to earn $500 monthly from Nvidia, we start with the yearly target of $6,000 ($500 x 12 months).

Next, we take this amount and divide it by Nvidia's 4 cent dividend: $6,000 / $0.04 = 150,000 shares.

Trending: These five entrepreneurs are worth $223 billion – they all believe in one platform that offers a 7-9% target yield with monthly dividends

So, an investor would need to own approximately $21,841,500 worth of Nvidia, or 150,000 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 / $0.04 = 30,000 shares, or $4,368,300 to generate a monthly dividend income of $100.

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.

Trending: Wondering if your investments can get you to a $5,000,000 nest egg? Speak to a financial advisor today. SmartAsset’s free tool matches you up with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.

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. That 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.

Better Yields Than Some REITs?

The current interest rate environment has created an incredible opportunity for income-seeking investors to earn massive yields, but not through publicly-traded REITs.

Arrived Homes, the Jeff Bezos-backed investment platform, has launched its Private Credit Fund, which provides access to a pool of short-term loans backed by residential real estate with a target 7% to 9% net annual yield paid to investors monthly. It paid 8.1% in August. The best part? Due to high demand the maximum investment amount is currently $5,000 with a minimum investment of ONLY $100.

Looking for fractional real estate investment opportunities? The Benzinga Real Estate Screener features the latest offerings.