Qualcomm Shares Soar: Unlocking the Power of Dividend Investing
A Key Win for Qualcomm
Qualcomm Incorporated (NASDAQ:QCOM) shares surged on Friday, following a significant legal victory against Arm Holdings plc (NASDAQ:ARM). A federal jury in Delaware ruled in favor of Qualcomm, clearing a major hurdle for the San Diego-based chipmaker.
Dividend Potential
With the recent buzz surrounding Qualcomm, investors are eyeing potential gains from the company’s dividends. As of now, Qualcomm offers an attractive annual dividend yield of 2.22%, translating to a quarterly dividend amount of 85 cents per share ($3.40 a year).
Harnessing Dividend Yield
So, how can investors capitalize on Qualcomm’s dividend yield to earn a regular income? To pocket $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $269,851 or around 1,765 shares. For a more modest $100 per month or $1,200 per year, you would need $53,970 or around 353 shares.
The Math Behind Dividend Investing
To calculate the required investment, simply divide the desired annual income by the dividend amount. For example, $6,000 / $3.40 = 1,765 shares ($500 per month), and $1,200 / $3.40 = 353 shares ($100 per month).
Understanding Dividend Yield Fluctuations
It’s essential to note that dividend yield can change over time, influenced by fluctuations in the dividend payment and stock price. The dividend yield is computed by dividing the annual dividend payment by the stock’s current price. For instance, if a stock pays an annual dividend of $2 and is currently priced at $50, the dividend yield would be 4% ($2/$50).
Stock Price Action
Shares of Qualcomm gained 1.7% to close at $152.89 on Friday, with an additional 1.9% gain in after-hours trading. As the company’s stock continues to rise, investors are taking notice of its dividend potential.
Unlocking the Power of Dividend Investing
By understanding the math behind dividend investing and harnessing the power of Qualcomm’s dividend yield, investors can unlock a regular income stream. With careful planning and calculation, investors can earn a substantial income from dividend-paying stocks like Qualcomm.
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