How to Make $500 a Month in Nvidia Stock After a Strong Earnings Report – NVIDIA (NASDAQ:NVDA)

NVIDIA Corporation (NASDAQ:NVDA) shares closed slightly higher during Wednesday’s session, continuing to rally.

Shares of the chipmaking giant have gained in each trading session since it reported higher-than-expected earnings last Wednesday. Since then, Nvidia shares are up about 21%.

On May 22, Nvidia announced better-than-expected financial results for the first quarter and issued strong guidance for the second quarter. The company announced a 10-to-1 stock split and raised its quarterly dividend by 150%.

Since the end of May 2023, the megacap tech name has seen an astonishing 186% growth, driven by skyrocketing demand for AI development chips.

With the recent buzz around Nvidia, some investors may also be paying attention to the company’s dividend yield potential. Nvidia currently offers an annual dividend yield of 0.03%, which equates to a quarterly dividend of 10 cents per share (40 cents annually).

So how can investors use the dividend yield to consistently receive $500 per month?

To earn $500 a month or $6,000 a year in dividends alone, you would need an investment of about $17,223,750 or about 15,000 shares. For a more modest $100 a month or $1,200 a year, you would need $3,444,750, or about 3,000 shares.

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To count: Divide your desired annual income ($6,000 or $1,200) by the dividend ($0.40 in this case). So $6,000 / $0.40 = 15,000 ($500 per month) and $1,200 / $0.40 = 3,000 shares ($100 per month).

Keep in mind that the dividend yield can change continuously because both the dividend payment and the share price change over time.

How it’s working: Dividend yield is calculated by dividing the annual dividend payment by the current share price.

For example, if a stock pays an annual dividend of $2 and is currently valued 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 will increase to 5% ($2/40).

Likewise, changes in dividend payments can impact profitability. If a company increases its dividend, profitability will also increase, provided the share price remains the same. Conversely, if dividend payments decline, profitability will also decline.

NVDA Price Action: Nvidia shares gained 0.8% to close at $1,148.25 on Wednesday.

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