NVIDIA Corporation (NASDAQ:NVDA) shares closed slightly higher on Monday.
The company's CEO, Jensen Huang, has underscored the potential of artificial intelligence (AI) in reshaping India's technological landscape, adding that it was "India's moment".
Huang's comments came following his meeting with Indian Prime Minister Narendra Modi during the latter's three-day U.S. visit, which concluded on Monday. Huang was among the 15 tech leaders who had the opportunity to engage with the prime minister.
With the recent buzz around NVIDIA, some investors may be eyeing potential gains from the company's dividends. As of now, NVIDIA has a dividend yield of 0.03%, which is a quarterly dividend amount of 1 cent a share (4 cents a year).
To figure out how to earn $500 monthly from NVIDIA, we start with the yearly target of $6,000 ($500 x 12 months).
Next, we take this amount and divide it by NVIDIA's $1.00 dividend: $6,000 / $0.04 = 150,000 shares
So, an investor would need to own approximately $17,439,000 worth of NVIDIA, or 150,000 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 / $0.04 = 30,000 shares, or $3,487,800 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.
NVDA Price Action: Shares of Nvidia gained 0.2% to close at $116.26 on Monday.