Benzinga - by Avi Kapoor, Benzinga Staff Writer.
Meta Platforms (NASDAQ:META) posted better-than-expected earnings and sales results for its first quarter on April 24.
The company reported roughly 3.24 billion Family Daily Active People in the first quarter. That’s up 7% year-over-year. The company said capital spending is likely to increase in future years as its artificial intelligence roadmap is supported.
The European Commission reportedly plans to investigate Meta's Facebook and Instagram over concerns regarding Russia disinformation, with suspicions of inadequate moderation.
Some Meta investors may be eyeing potential gains from the company's dividends. As of now, Meta has a dividend yield of 0.46%, which is a quarterly dividend amount of 50 cents a share ($2.00 a year).
To figure out how to earn $500 monthly from Meta, we start with the yearly target of $6,000 ($500 x 12 months).
Next, we take this amount and divide it by Meta's $2.00 dividend: $6,000 / $2.00 = 3,000 shares
So, an investor would need to own approximately $1,317,570 worth of Meta Platforms, or 3,000 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 / $2.00 = 600 shares, or $263,514 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.
META Price Action: Shares of Meta Platforms rose 2.1% to close at $439.19 on Wednesday.
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