How To Earn $500 A Month From Cisco Stock Ahead Of Q4 Earnings

Cisco Systems, Inc. CSCO is expected to release earnings results for its fourth quarter, after the closing bell on Wednesday, Aug. 14.

Analysts expect the San Jose, California-based company to report quarterly earnings at 85 cents per share, down from $1.08 per share in the year-ago period. Cisco is projected to post revenue of $13.54 billion, compared to $14.45 billion a year earlier, according to data from Benzinga Pro.

According to a recent Reuters report, Cisco plans to lay off thousands of employees in a second round of cuts this year, similar to or exceeding the 4,000 jobs eliminated in February, as it shifts focus to high-growth areas like cybersecurity and AI.

With the recent buzz around Cisco, some investors may be eyeing potential gains from the company's dividends. As of now, Cisco has a dividend yield of 3.53%, which is a quarterly dividend amount of 40 cents a share ($1.60 a year).

To figure out how to earn $500 monthly from Consolidated Water, we start with the yearly target of $6,000 ($500 x 12 months).

Next, we take this amount and divide it by Cisco's $1.60 dividend: $6,000 / $1.60  = 3,750 shares

So, an investor would need to own approximately $170,138 worth of Cisco, or 3,750 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 / $1.60 = 750 shares, or $34,028 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, 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.

CSCO Price Action: Shares of Cisco gained 1.1% to close at $45.37 on Tuesday.

Read More:

• Wall Street’s Most Accurate Analysts Spotlight On 3 Health Care Stocks Delivering High-Dividend Yields

Photo: Shutterstock