How to make $500 a month from HP stocks ahead of second quarter revenue
HP Inc. (NYSE:HPQ) will release second quarter financial results later The bell will be closed on Wednesday, May 28th.
Analysts expect the Palo Alto, California-based company to report quarterly revenues at 80 cents per share, up from 82 cents per share in the same period last year. According to data from HP, it projects quarterly revenue of $131.5 billion, compared to quarterly revenue of $1315 billion. Gasoline Pro.
On May 21, Morgan Stanley analyst Erik Woodring maintained his HP with an equal weight rating. He also raised his price target from $25 to $29.
Recent talks around HP may have led some investors to look at potential profits from the company’s dividends. Currently, the website offers an annual dividend yield of 4.09%. This is a quarterly dividend of 29 per share ($1.158 a year).
Start with your annual target of $6,000 ($500 x 12 months) to figure out how to make $500 a month from your HP.
Next, take this amount and divide it by $6,000/1.158 = 5,181 shares, which is HP’s $1.158 dividend.
Therefore, investors should own approximately $146,830 worth of HP, or 5,181 shares, to earn $500 a month.
Assuming a more conservative goal of $100 a month ($1,200 a year), we do the same calculation: $1,200/$1.158 = 1,036 shares, or $29,360 to generate monthly dividend income.
Please note that dividend yields may vary on a rolling basis as dividend payments and stock prices fluctuate over time.
Dividend yields are calculated by dividing the annual dividend payment by the current stock price. When the stock price changes, the dividend yields also change.
For example, if a stock pays an annual dividend of $2 and its current price is $50, its dividend yield is 4%. However, if the stock price rises to $60, the dividend yield drops to 3.33% ($2/$60).
Conversely, if the stock price drops to $40, the dividend yield increases to 5% ($2/$40).
Furthermore, the dividend payment itself can change over time, which can also affect dividend yields. If the company increases dividend payments, dividend yields will increase even if the stock price remains the same. Similarly, if a company reduces dividend payments, dividend yields decrease.
HPQ Price Action: HP’s shares rose 1.3% to close at $28.34 on Tuesday.
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