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

Qualcomm Incorporated QCOM will release earnings results for its fourth quarter, after the closing bell on Wednesday, Nov. 6.

Wall Street expects the San Diego, California-based company to report quarterly earnings at $2.56 per share, up from $2.02 per share in the year-ago period. The company projects to report revenue of $9.9 billion, compared to $8.66 billion a year earlier, according to data from Benzinga Pro.

On Tuesday, JPMorgan analyst Samik Chatterjee maintained Qualcomm with an Overweight and lowered the price target from $210 to $195.

With the recent buzz around Qualcomm ahead of quarterly earnings, some investors may be eyeing potential gains from the company's dividends, too. Qualcomm currently offers an annual dividend yield of 2.05%. That’s a quarterly dividend amount of 85 cents per share ($3.40 a year).

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

Next, we take this amount and divide it by Qualcomm's $3.40 dividend: $6,000 / $3.40 = 1,765 shares.

So, an investor would need to own approximately $292,831 worth of Qualcomm, or 1,765 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 / $3.40 = 353 shares, or $58,566 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 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%. 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.

Price Action: Shares of Qualcomm gained by 0.4% to close at $165.91 on Tuesday.

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