How To Earn $500 From Oracle Stock

Oracle Corporation ORCL shares are trading higher Tuesday following the company’s fourth-quarter earnings print, and a host of analyst upgrades.

By The Numbers: Oracle issued earnings of $1.67 per share, which came ahead of a $1.54 Street estimate, on revenues of $13.8 billion, which beat the $13.73 billion consensus estimate.

Goldman Sachs Group upgraded Oracle from Sell to Neutral with a price target of $120, while Guggenheim Partners maintained Oracle with a Buy rating and raised the price target from $120 to $150.

Amid Oracle's news, investors may be wondering about the potential for dividend gains from Oracle stock. Currently, Oracle has a dividend yield of 1.33%.

With that in mind, how much Oracle would an investor need to yield $500 per month in dividends?

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To determine how much Oracle an investor needs to own to yield $500 per month, we can start by calculating the annual dividend income required: $500 x 12 months = $6,000.

Next, we take this amount and divide it by Oracle’s dividend yield, which is currently 1.33%: $6,000 / 0.018 = $451,127.81.

So, an investor would need to own approximately $451,127.81 worth of Oracle, or 3,748 shares to generate a monthly dividend income of $500.

For investors seeking a more conservative goal, let’s consider a monthly income of $100.

Calculating similarly: $100 x 12 months equals $1,200.

Dividing $1,200 by the 1.33% dividend yield, we get $90,225.56.

This means an investor looking to yield $100 from Oracle would need to own $90,225.56, or 751 shares, 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.

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.

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