Analysts expect the Santa Clara, California-based company to report quarterly earnings at $2.30 per share. That’s up from $2.13 per share in the year-ago period. Applied Materials projects quarterly revenue of $7.16 billion, compared to $6.71 billion a year earlier, according to data from Benzinga Pro.
Applied Materials has surpassed consensus estimates on the top and bottom lines in each of the last ten consecutive quarters.
With the recent buzz around Applied Materials, some investors may be eyeing potential gains from the company’s dividends. The company currently offers an annual dividend yield of 0.88%. That’s a quarterly dividend amount of 40 cents per share ($1.60 a year).
To figure out how to earn $500 monthly from Applied Materials, we start with the yearly target of $6,000 ($500 x 12 months).
Next, we take this amount and divide it by Applied Materials’ $1.60 dividend: $6,000 / $1.60 = 3,750 shares.
So, an investor would need to own approximately $678,338 worth of Applied Materials, or 3,750 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 / $1.60 = 750 shares, or $135,668 to generate a monthly dividend income of $100.
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.
AMAT Price Action: Shares of Applied Materials fell by 1.3% to close at $180.89 on Wednesday.
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Overview Rating:
Speculative
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