How To Earn $500 A Month From Qualcomm Stock Ahead Of Q1 Earnings

Qualcomm Inc QCOM will release its first quarter fiscal 2025 financial results, after the closing bell, on Wednesday.

Analysts expect the San Diego, California-based company to report quarterly earnings at $2.96 per share, up from $2.75 per share in the year-ago period. Qualcomm projects quarterly revenue of $10.9 billion, compared to $9.92 billion a year earlier, according to data from Benzinga Pro.

On Jan. 17, Barclays analyst Tom O’Malley maintained Qualcomm with an Overweight rating and lowered the price target from $200 to $185.

With the recent buzz around Qualcomm, some investors may be eyeing potential gains from the company’s dividends too. As of now, Qualcomm offers an annual dividend yield of 1.96%, which is a quarterly dividend amount of 85 cents per share (3.40 a year).  

So, how can investors exploit its dividend yield to pocket a regular $500 monthly?

To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $305,416 or around 1,765 shares. For a more modest $100 per month or $1,200 per year, you would need $61,083 or around 353 shares.

To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($3.40 in this case). So, $6,000 / $3.40 = 1,765 ($500 per month), and $1,200 / $3.40 = 353 shares ($100 per month).

Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.

How that works: The dividend yield is computed by dividing the annual dividend payment by the stock’s current price.

For example, if a stock pays an annual dividend of $2 and is currently priced at $50, the dividend yield would be 4% ($2/$50). However, if the stock price increases to $60, the dividend yield drops to 3.33% ($2/$60). Conversely, if the stock price falls to $40, the dividend yield rises to 5% ($2/$40).

Similarly, changes in the dividend payment can impact the yield. If a company increases its dividend, the yield will also increase, provided the stock price stays the same. Conversely, if the dividend payment decreases, so will the yield.

QCOM Price Action: Shares of Qualcomm gained 1.6% to close at $173.04 on Tuesday.

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