Salesforce

How To Earn $500 A Month From Salesforce Stock Ahead Of Q2 Earnings

Salesforce, Inc. (NYSE:CRM) will release earnings results for the second quarter, after the closing bell on Wednesday, Sept. 3.

Analysts expect quarterly earnings at $2.78 per share, up from $2.56 per share in the year-ago period. Salesforce projects to report quarterly revenue of $10.14 billion, compared to $9.32 billion a year earlier, according to data from Benzinga Pro. The San Francisco, California-based company beat analyst estimates for revenue in the first quarter and has beaten estimates in eight of the last 10 quarters overall.

Some investors may be eyeing potential gains from Salesforce's annual dividend yield of 0.66%. That’s a semi-annual dividend amount of 42 cents per share ($1.66 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 $913,836 or around 3,614 shares. For a more modest $100 per month or $1,200 per year, you would need $182,818 or around 723 shares.

To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($1.66 in this case). So, $6,000 / $1.66 = 3,614 ($500 per month), and $1,200 / $1.66 = 723 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.

CRM Price Action: Shares of Salesforce fell 1.3% to close at $252.86 on Tuesday.

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