How To Earn $500 A Month From Qualcomm Stock After Better-Than-Expected Q4 Earnings

Qualcomm Incorporated QCOM reported better-than-expected fourth-quarter financial results and issued strong first-quarter guidance after the closing bell on Wednesday.

Qualcomm reported fourth-quarter revenue of $8.67 billion, which beat a Street consensus estimate of $8.51 billion. The company reported earnings per share of $2.02, beating a Street consensus estimate of $1.91.

The company said it sees first-quarter revenue guidance of $9.1 billion to $9.9 billion and earnings per share of $2.25 to $2.45.

With Qualcomm reporting upbeat quarterly earnings, some investors may be eyeing potential gains from the company’s dividends. As of now, Qualcomm has a dividend yield of 2.89%, which is a quarterly dividend amount of 80 cents a share ($3.20 a year).

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 $3.20 dividend: $6,000 / $3.20 = 1,875 shares

So, an investor would need to own approximately $207,919 worth of Qualcomm, or 1,875 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 / $3.20 = 375 shares, or $41,584 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.

QCOM Price Action: Shares of Qualcomm gained 1.7% to close at $110.89 on Wednesday.

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