Analysts expect the tech company to report quarterly earnings at $2.36 per share, up from $2.12 per share in the year-ago period. Applied Materials—a supplier of chipmaking equipment to Texas Instruments’ U.S. factories— projects to report quarterly revenue at $7.22 billion, compared to $6.78 billion a year earlier, according to data from Benzinga Pro.
Some investors may be eyeing potential gains from the company's dividends. The company currently offers an annual dividend yield of 0.97%. That’s a quarterly dividend amount of 46 cents per share ($1.84 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' $1.84 dividend: $6,000 / $1.84 = 3,261 shares.
So, an investor would need to own approximately $619,688 worth of Applied Materials, or 3,261 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 / $1.84 = 652 shares, or $123,900 to generate a monthly dividend income of $100.
Note that dividend yield can change on a rolling basis. 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 rose by 0.8% to close at $190.03 on Wednesday.
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