HP Inc. (NYSE:HPQ) will release its second-quarter financial results after the closing bell on Wednesday, May 28.
Analysts expect the Palo Alto, California-based company to report quarterly earnings at 80 cents per share, down from 82 cents per share in the year-ago period. HP projects quarterly revenue of $13.15 billion, compared to $12.80 billion a year earlier, according to data from Benzinga Pro.
On May 21, Morgan Stanley analyst Erik Woodring maintained HP with an Equal-Weight rating. He also raised the price target from $25 to $29.
With the recent buzz around HP, some investors may be eyeing potential gains from the company's dividends. Currently, HP offers an annual dividend yield of 4.09% — a quarterly dividend of 29 per share ($1.158 a year).
To figure out how to earn $500 monthly from HP, we start with the yearly target of $6,000 ($500 x 12 months).
Next, we take this amount and divide it by HP's $1.158 dividend: $6,000 / 1.158 = 5,181 shares.
So, an investor would need to own approximately $146,830 worth of HP, or 5,181 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 / $1.158 = 1,036 shares, or $29,360 to generate a monthly dividend income of $100.
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.
HPQ Price Action: Shares of HP gained by 1.3% to close at $28.34 on Tuesday.
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