Qualcomm Inc (NASDAQ:QCOM) will release its first quarter fiscal 2025 financial results, after the closing bell, on Wednesday.
Analysts expect the San Diego, California-based company to report quarterly earnings at $2.96 per share, up from $2.75 per share in the year-ago period. Qualcomm projects quarterly revenue of $10.9 billion, compared to $9.92 billion a year earlier, according to data from Benzinga Pro.
On Jan. 17, Barclays analyst Tom O’Malley maintained Qualcomm with an Overweight rating and lowered the price target from $200 to $185.
With the recent buzz around Qualcomm, some investors may be eyeing potential gains from the company’s dividends too. As of now, Qualcomm offers an annual dividend yield of 1.96%, which is a quarterly dividend amount of 85 cents per share (3.40 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 $305,416 or around 1,765 shares. For a more modest $100 per month or $1,200 per year, you would need $61,083 or around 353 shares.
To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($3.40 in this case). So, $6,000 / $3.40 = 1,765 ($500 per month), and $1,200 / $3.40 = 353 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.
QCOM Price Action: Shares of Qualcomm gained 1.6% to close at $173.04 on Tuesday.
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