How To Earn $500 A Month From Qualcomm Stock

San Diego-based semiconductor company Qualcomm Inc QCOM has been grabbing headlines lately, with major advancements in artificial intelligence.

The company’s head of AI, Ziad Asghar, recently shared some insights in an exclusive interview with Benzinga, adding more fuel to the Qualcomm hype train. Read the exclusive here.

Asghar called the ongoing AI revolution a “transformational moment” for the industry and expressed confidence in Qualcomm’s unrivaled scale and potential. The company’s initiative of integrating AI into mobile devices, using a blend of generative and hybrid AI, signifies a promising future for Qualcomm, and potentially for its investors.

With the buzz around Qualcomm, seen by its shares rising more than 16% in the past month, some investors may be eyeing potential gains from the company’s dividends. As of now, Qualcomm’s dividend yield stands at 2.59%.

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

Next, we take this amount and divide it by Qualcomm's 2.59% dividend yield: 2.59%: $6,000 / 0.0259 = $231,660.23.

So, an investor would need to own approximately $231,660.23 worth of Qualcomm, or 1,874 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 / 2.59% = $46,332.04, or 375 shares to generate a monthly dividend income of $100.

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.

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