How To Earn $500 A Month From HP Stock Ahead Of Q1 Print

HP Inc. HPQ is expected to release earnings results for the first fiscal quarter ended Jan. 31, 2024, after the closing bell on Wednesday.

Analysts expect the Palo Alto, California-based company to report quarterly earnings at 81 cents per share, up from year-ago earnings of 75 cents per share. HP is projected to post revenue of $13.56 billion, according to data from Benzinga Pro.

On Feb. 14, HSBC analyst Stephen Bersey upgraded HP from Hold to Buy and raised the price target from $30 to $33.

With the recent buzz around HP, some investors may be eyeing potential gains from the company’s dividends too. As of now, HP offers an annual dividend yield of 3.82%, which is a quarterly dividend amount of 27.56 cents per share ($1.102 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 $156,979 or around 5,445 shares. For a more modest $100 per month or $1,200 per year, you would need $31,396 or around 1,089 shares.

Read This: Salesforce, TJX And 3 Stocks To Watch Heading Into Wednesday

To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($1.102 in this case). So, $6,000 / $1.102 = 5,445 ($500 per month), and $1,200 / $1.102 = 1,089 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.

HPQ Price Action: Shares of HP gained 0.1% to close at $28.83 on Tuesday.

Read More: This Jeff Bezos-backed platform has made real estate investing as easy as ordering stuff on Amazon. Read how you can invest as little as $100 in its offerings

Photo: Shutterstock