Benzinga - by Avi Kapoor, Benzinga Staff Writer.
NVIDIA Corporation (NASDAQ: NVDA) shares closed slightly higher during Monday’s session.
The company is expected to release earnings results for the recent quarter next month, with analysts anticipating quarterly earnings at $4.50 per share on revenue of $20.18 billion.
Nvidia, meanwhile, is looking to boost its AI chip sales in India significantly through a deal with Yotta, an Indian data center operator. The $500 million deal brings Nvidia's total orders from Yotta to $1 billion, marking a substantial increase in Yotta's AI cloud services.
Sunil Gupta, CEO and co-founder of Yotta shared that the order includes nearly 16,000 Nvidia H100 and GH200 AI chips, with delivery expected by March 2025, Reuters reported.
With the recent buzz around Nvidia, some investors may be eyeing potential gains from the company’s dividends. As of now, Nvidia has a dividend yield of 0.03%, which is a quarterly dividend amount of 4 cents a share (16 cents a year).
To figure out how to earn $500 monthly from Nvidia dividends, we start with the yearly target of $6,000 ($500 x 12 months).
Next, we take this amount and divide it by Nvidia’s $0.16 dividend: $6,000 / $0.16 = 37,500 shares
So, an investor would need to own approximately $22,370,250 worth of Nvidia, or 37,500 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 / $0.16 = 7,500 shares, or $4,474,050 to generate a monthly dividend income of $100.
Also Read: Top 4 Consumer Stocks That May Collapse This Month
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.
NVDA Price Action: Shares of Nvidia gained 0.3% to close at $596.54 on Monday.
Read More: This Jeff Bezos-backed platform has made real estate investing as easy as ordering stuff on Amazon. Read how you can invest as little as $100 in its offerings
Photo: Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.