How To Earn $500 A Month From Oracle After Mixed Q1 Results

Oracle Corporation ORCL released mixed results for its first quarter.

Oracle reported first-quarter revenue of $12.45 billion, which was up 9% year-over-year, compared to the market estimate of $12.46 billion. The company reported first-quarter adjusted earnings per share of $1.19, which beat a Street consensus estimate of $1.15.

Several analysts made changes to their price targets following the release of quarterly results. Analysts, including, UBS, DA Davidson and Barclays slashed their price targets on Oracle, while Evercore ISI Group and Morgan Stanley boosted their price targets on the stock on Tuesday.

With the buzz around Oracle following quarterly earnings, some investors may be eyeing potential gains from the company’s dividends too. As of now, Oracle offers an annual dividend yield of 1.27%, which is a quarterly dividend amount of $0.40 a share ($1.60 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 $411,038 or around 3,750 shares. For a more modest $100 per month or $1,200 per year, you would need $82,208 or around 750 shares.

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To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend (1.60 in this case). So, $6,000 / 1.60= 3,750 shares ($500 per month), and $1,200 / 1.60= 750 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.

ORCL Price Action: Shares of Oracle dipped 13.5% to close at $109.61 on Tuesday.

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