How To Earn $500 A Month From Nvidia Stock After Trump Win

Shares of Nvidia Corporation NVDA settled higher on Wednesday after Donald Trump won the election to become the 47th U.S. president.

The Biden administration imposed an artificial intelligence technology embargo on China, restricting the country's access to sophisticated AI chips from Nvidia, citing national security threats.

With the recent buzz around Nvidia ahead of quarterly earnings, some investors may also be eyeing potential gains from the company's dividends. As of now, Nvidia offers an annual dividend yield of 0.03%. That’s a quarterly dividend amount of 1 cent per share (4 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 4 cent dividend: $6,000 / $0.04 = 150,000 shares.

So, an investor would need to own approximately $21,841,500 worth of Nvidia, or 150,000 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 / $0.04 = 30,000 shares, or $4,368,300 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. That 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 by 4.1% to close at $145.61 on Wednesday.

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