Built-in Qualcomm (NASDAQ:QCOM) stock closed higher during Friday’s session.
Qualcomm wins key victory in legal battle against semiconductor design company Arm Holdings plc (NASDAQ: ARM). A federal jury in Delaware ruled that Qualcomm did not violate its licensing agreement with Arm, removing a hurdle for the San Diego, California-based chipmaker.
With the recent rumors surrounding Qualcomm, some investors may also be considering potential dividend gains from the company. As of now, Qualcomm offers an annual dividend yield of 2.22%, which translates to a quarterly dividend of 85 cents per share ($3.40 per year).
So how can investors exploit its dividend yield to pocket $500 a month?
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To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of about $269,851 or about 1,765 shares. For a more modest $100 per month or $1,200 per year, you would need $53,970 or about 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).
Please note that dividend yields can change continuously, as both dividend payments and share price fluctuate over time.
How that works: The dividend yield is calculated by dividing the annual dividend payment by the current share 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 share price rises to $60, the dividend yield falls to 3.33% ($2/$60). Conversely, if the stock price falls to $40, the dividend yield increases to 5% ($2/$40).
Similarly, changes in dividend payments can affect performance. If a company increases its dividend, the yield will also increase, as long as the share price stays the same. Conversely, if the dividend payout decreases, so will the yield.
QCOM Price Action: Qualcomm shares gained 1.7% to close at $152.89 on Friday. The company’s shares gained another 1.9% in after-hours trading.
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This article How to Make $500 a Month with Qualcomm Stock originally appeared on Benzinga.com
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