How To Earn $500 A Month From Nvidia Stock Ahead Of Q1 Earnings Report

NVIDIA Corporation NVDA shares closed slightly higher on Tuesday ahead of an earnings report set to be released on Wednesday. The company's stock surged around 20% over the past month, while adding 98% year-to-date.

Analysts expect the Santa Clara, California-based company to report quarterly earnings at $5.59 per share, up sharply from 98 cents per share in the year-ago period. NVIDIA is projected to post quarterly revenue of $24.65 billion, compared to $6.52 billion a year earlier, according to data from Benzinga Pro.

Several analysts raised their price targets on Nvidia prior to the release of quarterly results. Baird analyst Tristan Gerra maintained NVIDIA with an Outperform, while raising the price target from $1,050 to $1,200. Stifel analyst Ruben Roy boosted the price target from $910 to $1,085, while Susquehanna analyst Christopher Rolland increased the price target from $1,050 to $1,100. Barclays analyst Blayne Curtis also raised the price target on the stock from $850 to $1,100.

With the recent buzz around Nvidia, some investors may be eyeing potential gains from the company's dividends. As of now, Nvidia has a dividend yield of 0.02%, which is a quarterly dividend amount of 4 cents a share (16 cents a year).

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

Next, we take this amount and divide it by Nvidia's $0.16 dividend: $6,000 / $0.16  = 37,500 shares

So, an investor would need to own approximately $35,769,750 worth of Nvidia, or 37,500 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 / $0.16 = 7,500 shares, or $7,153,950 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.

NVDA Price Action: Shares of Nvidia gained 0.6% to close at $953.86 on Tuesday.

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