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How To Earn $500 A Month From Oracle Stock Ahead Of Q4 Earnings - Oracle (NYSE:ORCL)

iconBenzinga

2024-06-11 16:48

Oracle investors are eyeing potential gains from the company's annual dividend yield of 1.29% — a quarterly dividend amount of $1.60 a year.

  Oracle CorporationORCL will release earnings results for its fourth quarter, after the closing bell on Tuesday.

  Analysts expect the software company to report quarterly earnings at $1.65 per share. That‘s down from $1.67 per share in the year-ago period. Oracle is projected to post quarterly revenue of $14.59 billion, compared to $13.84 billion a year ago, according to data from Benzinga Pro. The company has missed analysts’ revenue expectations in three consecutive quarters.

  The tech giant recently announced plans to open two Oracle Cloud Regions in Morocco, offering enterprise cloud services to local and regional organizations across Africa.

  With the recent buzz around Oracle, some investors may be eyeing potential gains from the company's dividends, too. As of now, Oracle offers an annual dividend yield of 1.29% — a quarterly dividend amount of 40 cents per share ($1.60 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 $466,875 or around 3,750 shares. For a more modest $100 per month or $1,200 per year, you would need $93,375 or around 750 shares.

  To calculate:Divide the desired annual income ($6,000 or $1,200) by the dividend ($1.60 in this case). So, $6,000 / $1.60 = 3,750 ($500 per month), and $1,200 / $1.60 = 750 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 stocks 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.

  ORCL Price Action:Shares of Oracle fell 1.1% to close at $124.50 on Monday.

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