How To Earn $500 A Month From Dell Stock After Upbeat Earnings

Dell Technologies Inc. DELL reported better-than-expected second-quarter results and raised its outlook for the year.

Dell reported quarterly earnings of $1.74 per share which beat the analyst consensus estimate of $1.14, a 3.57% increase over earnings of $1.68 per share from the same period last year. The company reported quarterly sales of $22.93 billion, which beat the analyst consensus estimate of $20.85 billion. However, this still represents a 13.21% decline compared to the $26.43 billion in sales generated during the same quarter last year.

With the buzz around Dell following upbeat quarterly results, some investors may be eyeing potential gains from the company’s dividends, too. As of now, Dell offers an annual dividend yield of 2.17%, which is a quarterly dividend amount of $0.37 a share ($1.48 a year).

So, how can investors exploit its dividend yield to pocket a regular $500 monthly?

To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $276,442 or around 4,054 shares. For a more modest $100 per month or $1,200 per year, you would need to purchase 810 shares for $55,234.

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To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend (1.48 in this case). So, $6,000 / 1.48= 4,054 shares ($500 per month), and $1,200 / 1.48= 810 shares ($100 per month).

Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.

How that works: The dividend yield is computed by dividing the annual dividend payment by the stock's current price.

For example, if a stock pays an annual dividend of $2 and is currently priced at $50, the dividend yield would be 4% ($2/$50). However, if the stock price increases to $60, the dividend yield drops to 3.33% ($2/$60). Conversely, if the stock price falls to $40, the dividend yield rises to 5% ($2/$40).

Similarly, changes in the dividend payment can impact the yield. If a company increases its dividend, the yield will also increase, provided the stock price stays the same. Conversely, if the dividend payment decreases, so will the yield.

DELL Price Action: Shares of Dell jumped 21.3% to close at $68.19 on Friday.

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