Benzinga - by Lisa Levin, Benzinga Editor.
Dell Technologies Inc. (NYSE: DELL) reported mixed financial results for its third quarter on Thursday.
Dell reported quarterly earnings of $1.88 per share, topping the analyst consensus estimate of $1.47. Revenue of $22.25 billion missed the analyst consensus estimate of $23.00 billion, according to Benzinga Pro.
With the recent buzz around Dell, some investors may be eyeing potential gains from the company’s dividends. As of now, Dell has a dividend yield of 2.10%, which is a quarterly dividend amount of 37 cents a share ($1.48 a year).
To figure out how to earn $500 monthly from Dell dividends, we start with a yearly target of $6,000 ($500 x 12 months).
Next, we take this amount and divide it by Dell $1.48 dividend: $6,000 / $1.48 = 4,054 shares
So, an investor would need to own approximately $291,604 worth of Dell, or 4,054 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 / $1.48 = 811 shares, or $58,335 to generate a monthly dividend income of $100.
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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.
DELL Price Action: Shares of Dell fell 5.2% to close at $71.93 on Friday.
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