Hewlett Packard Enterprise Company (NYSE:HPE) will release its second-quarter earnings results after the closing bell on Tuesday.
Analysts expect the company to report quarterly earnings at 33 cents per share, down from 42 cents per share in the year-ago period. HPE projects to report quarterly revenue of $7.5 billion, compared to $7.2 billion a year earlier, according to data from Benzinga Pro.
On May 19, Hewlett Packard Enterprise Company announced enhancements to the portfolio of Nvidia Corp.’s NVIDIA AI Computing by HPE solutions.
With the recent buzz around Hewlett Packard Enterprise, some investors may be eyeing potential gains from the company’s dividends too. As of now, Hewlett Packard Enterprise offers an annual dividend yield of 3.00%, which is a quarterly dividend amount of 13 cents per share (52 cents 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 $200,069 or around 11,538 shares. For a more modest $100 per month or $1,200 per year, you would need $40,021 or around 2,308 shares.
To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($0.52 in this case). So, $6,000 / $0.52 = 11,538 ($500 per month), and $1,200 / $0.52 = 2,308 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 stock’s 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.
HPE Price Action: Shares of Hewlett Packard Enterprise gained 0.4% to close at $17.34 on Monday.
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