How To Earn $500 A Month From Intuit Stock

Intuit Inc. INTU reported better-than-expected earnings and sales results for Q4.

Intuit reported quarterly earnings of $1.65 per share, which beat the analyst consensus estimate of $1.43. The company reported quarterly sales of $2.71 billion, which beat the analyst consensus estimate of $2.64 billion.

The company said it sees full-year 2024 revenue in a range between $15.89 billion and $16.105 billion and earnings between $16.17 and $16.47 per share.

Following the earnings report, Piper Sandler raised the price target from $497 to $528, while Keybanc increased the price target from $525 to $535.

With the buzz around Intuit, seen by its shares rising more than 21% over the past six months, some investors may be eyeing potential gains from the company’s dividends. As of now, Intuit’s dividend yield stands at 0.64%.

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

Next, we take this amount and divide it by Intuit’s 0.64% dividend yield: 0.64%: $6,000 / 0.0064 = $937,500.

So, an investor would need to own approximately $937,500 worth of Intuit, or 1,909 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 / 0.64% = $187,500, or 382 shares 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.

INTU Price Action: Shares of Intuit fell 0.5% to $498.00 in Friday's pre-market trading session.

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