close
close

Latest Post

A mixed-use project is planned for a site near Ohio University’s Dublin campus. Westfield Washington Schools Honors 2024 Retirees • Latest Publications

How to make $500 a month with Oracle stock before Q4 earnings release

How to make $500 a month with Oracle stock before Q4 earnings release

Oracle Corporation (NYSE:ORCL) will release fourth-quarter results after the market closes on Tuesday.

Analysts expect the software company to report quarterly earnings of $1.65 per share, down from $1.67 per share in the year-ago period. According to data from Benzinga Pro, Oracle is expected to report quarterly revenue of $14.59 billion, up from $13.84 billion a year ago. The company has missed analysts’ revenue expectations for three consecutive quarters.

The technology giant recently announced plans to open two Oracle Cloud regions in Morocco to provide enterprise cloud services to local and regional organizations across Africa.

Given the recent excitement surrounding Oracle, some investors may also be eyeing potential gains from the company’s dividends. Currently, Oracle offers an annual dividend yield of 1.29% – a quarterly dividend amount of 40 cents per share ($1.60 per year).

So how can investors use the dividend yield to earn a regular $500 per month?

To earn $500 per month or $6,000 per year 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.

Read this: Jim Cramer doesn’t recommend SLB, and BlackBerry? “Nothing there”

View more earnings on ORCL

Calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend (in this case, $1.60). So $6,000 / $1.60 = $3,750 ($500 per month) and $1,200 / $1.60 = 750 shares ($100 per month).

Note that the dividend yield can change continuously as both the dividend payment and the share price fluctuate over time.

How it works: The dividend yield is calculated by dividing the annual dividend payout by the current share price.

For example, if a stock pays an annual dividend of $2 and is currently trading at $50, the dividend yield is 4% ($2/$50). However, if the stock price rises to $60, the dividend yield drops to 3.33% ($2/$60). Conversely, if the stock price falls to $40, the dividend yield increases to 5% ($2/$40).

Changes in dividend payouts can also affect returns. If a company increases its dividend, the returns also increase, provided the share price remains the same. Conversely, if the dividend payout decreases, the returns also decrease.

ORCL price promotion: Oracle shares fell 1.1% to close at $124.50 on Monday.

Check this out: How to Find Dividend Stocks: Scan, Analyze and Capture with Benzinga Pro

Image: Shutterstock

“THE SECRET WEAPON OF ACTIVE INVESTORS” Up your stock game with the #1 trading tool for “news and everything else”: Benzinga Pro – Click here to start your 14-day trial now!

Want to get the latest stock analysis from Benzinga?

This article How to Make $500 a Month on Oracle Stock Ahead of Q4 Earnings Release originally appeared on Benzinga.com

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Leave a Reply

Your email address will not be published. Required fields are marked *