27% profits every 20 days?
This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.
Intel Corporation (NASDAQ:INTC) is set to release earnings results for its first quarter, after the closing bell on April 25.
Analysts expect the Santa Clara, California-based company to report quarterly earnings at 14 cents per share, versus a year-ago loss of 4 cents per share. Intel is projected to report quarterly revenue of $12.77 billion, compared to $11.04 billion in the year-earlier period, according to data from Benzinga Pro.
Intel is looking to launch two artificial intelligence chips with diminished capabilities so that China can comply with U.S. semiconductor sanctions. Evercore ISI Group analyst Mark Lipacis initiated coverage on Intel with an In-Line rating and announced a price target of $40.
With the recent buzz around Intel, some investors may be eyeing potential gains from the company’s dividends. As of now, Intel has a dividend yield of 1.38%, which is a quarterly dividend amount of 12.5 cents a share (50 cents a year).
To figure out how to earn $500 monthly from Intel, we start with a yearly target of $6,000 ($500 x 12 months).
Next, we take this amount and divide it by Intel’s $0.50 dividend: $6,000 / $0.50 = 12,000 shares
So, an investor would need to own approximately $435,120 worth of Intel, or 12,000 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 / $0.50 = 2,400 shares, or $87,024 to generate a monthly dividend income of $100.
Also Read: Investor Optimism Decreases; Dow Ends 6-Session Losing Streak
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.
INTC Price Action: Shares of Intel fell 0.1% to close at $36.26 on Tuesday.
Read More: Abbott Laboratories, U.S. Bancorp And 3 Stocks To Watch Heading Into Wednesday
Photo: Shutterstock
27% profits every 20 days?
This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!