How To Earn $500 A Month From NVIDIA Stock After Last Week's Strong Earnings Report

NVIDIA Corporation NVDA recently announced its plans to hire approximately 24 positions for its autonomous driving team, with recruiting spanning across Beijing, Shanghai and Shenzhen.

NVIDIA, last week, reported better-than-expected results for its third quarter and issued strong revenue guidance for the fourth quarter.

With the recent buzz around NVIDIA, some investors may be eyeing potential gains from the company’s dividends too. As of now, NVIDIA offers an annual dividend yield of 0.03%, which is a quarterly dividend amount of 4 cents per share (16 cents 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 $17,932,875 or around 37,500 shares. For a more modest $100 per month or $1,200 per year, you would need $3,586,575 or around 7,500 shares.

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To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($0.16 in this case). So, $6,000 / $0.16 = 37,500 ($500 per month), and $1,200 / $0.16 = 7,500 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.

NVDA Price Action: Shares of NVIDIA fell 0.9% to close at $478.21 on Tuesday.

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