How To Earn $500 A Month From Marvell Technology Stock

Shares of Marvell Technology, Inc. MRVL traded lower on Friday after the company released results for the second quarter.

The company reported quarterly earnings of 33 cents per share, which beat the analyst consensus estimate of 32 cents. The company reported quarterly sales of $1.34 billion, which beat the analyst consensus estimate of $1.33 billion.

Marvell issued third-quarter 2024 revenue guidance of $1.4 billion plus or minus 5%, versus the $1.39 billion estimate.

Following the release of earnings report, Morgan Stanley cut the price target on Marvell Technology from $68 to $65, while B. Riley Securities raised the price target on the stock from $75 to $77.

So, how can investors exploit its dividend yield to pocket a regular $500 monthly?

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To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $1,337,500, or around 25,000 shares. For a more modest $100 per month or $1,200 per year, you would need $267,500 or around 5000 shares.

To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend (0.24 in this case). So, $6,000 / 0.24 = 25,000 shares ($500 per month), and $1,200 / 0.24= 5,000 shares ($100 per month).

Note that dividend yield can change on a rolling basis, as the dividend payment and the 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.

MRVL Price Action: Shares of Marvell Tech fell 6.6% to close at $53.50 on Friday.

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