How To Earn $500 A Month From Broadcom Ahead Of Q1 Earnings Report

Broadcom Inc. (NASDAQ: AVGO) is set to release earnings results for its first quarter, after the closing bell on Thursday.

Analysts expect the Palo Alto, California-based company to report quarterly earnings at $10.29 per share, down from year-ago earnings of $10.33 per share. Broadcom is projected to post revenue of $11.72 billion for the latest quarter, according to data from Benzinga Pro.

On Tuesday, Broadcom unveiled the WatchTower Platform, an innovative open observability solution aimed at enhancing business performance by simplifying the identification and resolution of priority incidents within the mainframe environment.

With the recent buzz around Broadcom, some investors may be eyeing potential gains from the company’s dividends. As of now, Broadcom has a dividend yield of 1.56%, which is a quarterly dividend amount of $5.25 a share ($21.00 a year).

To figure out how to earn $500 monthly from Broadcom, we start with the yearly target of $6,000 ($500 x 12 months).

Next, we take this amount and divide it by Broadcom’s $21.00 dividend: $6,000 / $21.00 = 286 shares

So, an investor would need to own approximately $386,100 worth of Broadcom, or 286 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 / $21.00 = 57 shares, or $76,950 to generate a monthly dividend income of $100.

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View more earnings on AVGO

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.

AVGO Price Action: Shares of Broadcom gained 0.5% to close at $1,350.00 on Wednesday.

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Latest Ratings for AVGO

Date

Firm

Action

From

To

Mar 2022

Truist Securities

Maintains

Buy

Mar 2022

JP Morgan

Maintains

Overweight

Mar 2022

Morgan Stanley

Maintains

Overweight

View More Analyst Ratings for AVGO

View the Latest Analyst Ratings

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This article How To Earn $500 A Month From Broadcom Ahead Of Q1 Earnings Report originally appeared on Benzinga.com

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