Benzinga - by Avi Kapoor, Benzinga Staff Writer.
Intel Corporation (NASDAQ:INTC) reported worse-than-expected first-quarter sales results and issued weak EPS guidance on April 25.
Intel reported quarterly earnings of 18 cents per share, which beat the analyst consensus estimate of 14 cents. Quarterly sales came in at $12.72 billion, which missed the analyst consensus estimate of $12.78 billion, according to data from Benzinga Pro.
Intel said it sees second-quarter earnings of 10 cents per share, versus the 10 cent estimate, and revenue in a range of $12.5 billion to $13.5 billion, versus the $12.68 billion estimate.
With the recent buzz around Intel, some investors may be eyeing potential gains from the company's dividends too. As of now, Intel offers an annual dividend yield of 1.64%, which is a quarterly dividend amount of 12.5 cents per share (50 cents 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 $365,640 or around 12,000 shares. For a more modest $100 per month or $1,200 per year, you would need $73,128 or around 2,400 shares.
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To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($0.50 in this case). So, $6,000 / $0.50 = 12,000 ($500 per month), and $1,200 / $0.50 = 2,400 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.
INTC Price Action: Shares of Intel fell 2.8% to close at $30.47 on Tuesday.
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