How To Earn $500 A Month From Intel Stock

Intel Corporation INTC on Wednesday announced that its manufacturing business will operate as a separate unit, causing shares to slip into Thursday's session.

What Happened: The Santa Clara, California-based tech giant is aiming to offer its manufacturing services to other companies, including competitors. Intel did not give clear guidelines on its scaling plan, or new external customers for the business.

Intel CFO David Zinsner says the company will adopt a customer-supplier relationship model with the manufacturing business. The company expects to become the second-largest foundry in 2024, generating more than $20 billion in manufacturing revenue.

Summit Insights Group analyst Kinngai Chan told Reuters that Intel’s forecast lags behind Taiwan Semiconductor Manufacturing Co’s TSM expected sales of close to $85 billion in 2024.

“The presentation essentially tells investors that its current manufacturing is sub-scale and could remain sub-scale for a while,” Chan said.

Read Also: Micron Braces For Semiconductor Assembly And Test Facility In India; To Invest Up To $825M

However, despite concerns, income-oriented investors may find Intel appealing due to its dividend yield of 1.53%.

For an investor looking to earn $500 per month from Intel dividends, we'll start with the $500 target, which translates to $6,000 per year ($500 x 12 months).

Given Intel’s 1.53% dividend yield, we divide the yearly target by the yield: $6,000 / 0.0153 = $392,156.86.

So, an investor would need to own approximately 12,004 shares of Intel to generate a monthly dividend income of $500.

For a more conservative goal of $100 per month ($1,200 annually), the calculation would be: $1,200 / 0.0153 = $78,431.37, or 2,399 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 price is $50, its dividend yield would be 4%. 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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