How To Earn $500 A Month From Cisco Stock Ahead Of Q4 Print

Cisco Systems, Inc. CSCO is expected to release earnings results for its second quarter, after the closing bell on Feb. 14, 2024.

Analysts expect the company to report quarterly earnings at 84 cents per share, down from year-ago earnings of 88 cents per share. The company is projected to post revenue of $12.71 billion for the latest quarter, according to data from Benzinga Pro.

On Monday, UBS analyst David Vogt maintained Cisco Systems with a Neutral and raised the price target from $54 to $55.

The San Jose, California-based company is reportedly set to restructure its operations, potentially resulting in thousands of job cuts as it aims to prioritize high-growth sectors.

With the recent buzz around Cisco, some investors may be eyeing potential gains from the company’s dividends. As of now, Cisco has a dividend yield of 3.14%, which is a quarterly dividend amount of 39 cents a share ($1.56 a year).

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

Next, we take this amount and divide it by Cisco’s $1.56 dividend: $6,000 / $1.56 = 3,846 shares

So, an investor would need to own approximately $190,915 worth of Cisco, or 3,846 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 / $1.56 = 769 shares, or $38,173 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.

CSCO Price Action: Shares of Cisco fell 0.7% to close at $49.64 on Tuesday.

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