How To Generate $500 In Monthly Income From Meta Platforms Shares Before First-Quarter Financial Results
The technology giant Meta Platforms, Inc. (NASDAQ:META) is slated to unveil its first-quarter earnings after the market closes on Wednesday.
Market specialists are anticipating the social media powerhouse based in Menlo Park, California, to disclose quarterly earnings of $4.32 per share, which is a significant increase from $2.20 per share reported in the same quarter of the previous year. According to projections amassed by Benzinga Pro, Meta is expected to reveal a rise in quarterly revenues to $36.16 billion, up from $28.64 billion reported in the corresponding quarter of last year. Meta has consistently surpassed revenue prognostications for six consecutive quarters.
On April 22, Keybanc analyst Justin Patterson reiterated his confidence in Meta Platforms with an Overweight recommendation, albeit adjusting the target price from $575 to $555. Meanwhile, JMP Securities analyst Andrew Boone reaffirmed a Market Outperform stance on the stock while keeping a price target of $550.
Amidst the current excitement surrounding Meta Platforms, investors might be considering the possibility of reaping earnings from the company’s dividend distributions. Currently, Meta Platforms offers a dividend yield of 0.40%, equating to a quarterly distribution of 50 cents per share, or $2.00 on an annual basis.
To calculate the approach to securing $500 every month from Meta Platforms, one would set an annual goal of $6,000 ($500 multiplied by 12 months).
Subsequently, this target is divided by Meta’s annual dividend of $2.00: $6,000 / $2.00 equals the need for 3,000 shares.
Hence, to consistently earn a dividend revenue of $500 per month, an investor would need to hold around 3,000 shares valued at approximately $1,488,300 worth of Meta Platforms stock.
For those setting a modest aim of $100 per month ($1,200 per annum), the same math applies: $1,200 / $2.00 equals 600 shares, which translates to owning about $297,660 of Meta Platforms stock to yield that monthly dividend income of $100.
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It’s essential to note that the dividend yield fluctuates as the annual dividend payout and the stock’s market price vary over time.
The dividend yield ratio is computed by dividing the stock’s annual dividend by the current market price of the stock. As share prices move, the dividend yield ratio correspondingly adjusts.
For instance, should a stock issue an annual dividend of $2 and its market price is $50, the dividend yield stands at 4%. Should the share price ascend to $60, the yield would decrease to around 3.33% ($2 divided by $60).
On the other hand, if the stock’s price drops to $40, the yield escalates to 5% ($2 divided by $40).
Additionally, changes in the dividend issued can alter the yield. If a company raises its dividend, the yield would increase if the share price remains the same. Conversely, a reduction in dividend would lead to a decreased yield.
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Shares of Meta Platforms experienced a growth of 3% to close at $496.10 on Tuesday.
Upcoming: Tesla, Boeing And 3 Stocks Poised For Attention As We Approach Wednesday
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Source : finance.yahoo.com
How can I calculate the monthly income from Meta Platforms shares based on the dividend yield?
To calculate the monthly income you would receive from Meta Platforms shares based on their dividend yield, follow these steps:
- Know the Annual Dividend Per Share: First, you need to know the annual dividend paid per share. For Meta Platforms, suppose it’s $2.00 per share annually.
- Calculate the Total Annual Dividend: Multiply the number of shares you own by the annual dividend per share. For example, if you own 100 shares, your total annual dividend would be 100 shares * $2.00 = $200.
- Calculate the Monthly Income: Since you receive dividends annually (but might be distributed quarterly or monthly, depending on the company’s policy), to find out the monthly income, divide your total annual dividend by 12 (months). So, using the above example, $200 / 12 = approximately $16.67 per month.
Remember, the actual monthly income could vary slightly based on how the company distributes the dividend (quarterly, semi-annually, or annually) and any changes in the dividend amount in the future. The calculation assumes the dividend payment remains stable and is an annual division for simplicity.
Is the dividend payment for Meta Platforms shares distributed quarterly or monthly?
As of the last known information, Meta Platforms (formerly Facebook) does not pay a dividend on its shares and has not done so in the past. Instead, the company reinvests its profits back into the business to fuel growth. This is typical for many technology companies, especially those in growth phases where capital is more effectively used by investing in product development, research, building infrastructure, and expansion efforts rather than being distributed to shareholders as dividends.
Therefore, there are no monthly or quarterly dividend payments to calculate for Meta Platforms shares. Investors in Meta Platforms would look for returns primarily through potential appreciation of the stock’s value over time, rather than through dividend income.
Always check the latest financial disclosures from the company for current information, as dividend policies can change.