HP Inc.. (NYSE: HPQ) is expected to report its second quarter results, after the closing bell on Wednesday.
Analysts expect the Palo Alto, Calif.-based company to report quarterly earnings of 81 cents per share, up from 80 cents per share a year ago. HP is expected to report quarterly revenue of $12.6 billion, according to data from Benzinga Pro.
On May 21, Barclays analyst Tim Long upgraded HP’s rating from underweight to equal, while increasing the price target from $24 to $30.
With the recent buzz around HP, some investors may be looking at potential gains from the company’s dividends. Currently, HP has a dividend yield of 3.33%, or a quarterly dividend of 27.56 cents per share ($1.102 per year).
To learn how to make $500 per month from HP, we start with the annual goal of $6,000 ($500 x 12 months).
Then we take that amount and divide it by HP’s $1.102 dividend: $6,000 / $1.102 = 5,445 shares.
So, an investor would need to own approximately $180,447 of HP, or 5,445 shares, to generate monthly dividend income of $500.
Assuming a more conservative goal of $100 per month ($1,200 per year), we do the same calculation: $1,200 / $1.102 = 1,089 shares, or $36,089 to generate monthly dividend income of $100 .
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Show more income on HPQ
Note that the dividend yield can change continuously, as the dividend payment and stock price both fluctuate over time.
The dividend yield is calculated by dividing the annual dividend payout 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 drops to $40, the dividend yield would increase to 5% ($2/$40).
Additionally, the dividend payout itself may also change over time, which may also impact the dividend yield. If a company increases its dividend payout, the dividend yield will increase even if the stock price stays the same. Likewise, if a company decreases its dividend payout, the dividend yield will decrease.
HPQ Price Action: HP shares gained 1.2% to close at $33.14 on Tuesday.
Read more: A $1.5 million bet on this health care stock? Check out these 4 stocks that insiders are buying
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This article How to Make $500 a Month from HP Stock Ahead of Q2 Earnings Report originally appeared on Benzinga.com
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