A Wait for Dividends: Revisiting Broadcom’s Imminent Earnings Report
Broadcom Inc. AVGO is poised to unveil its first-quarter earnings, post the close on Thursday.
Estimates foresee the Palo Alto, California-based tech giant reporting quarterly earnings of $10.29 per share, a slight decline from $10.33 a share a year ago. Anticipation is rife for Broadcom to reveal revenues hitting $11.72 billion for the quarter, based on data from trustworthy sources.
Emerging into the light this week, Broadcom has taken the wraps off its WatchTower Platform – an innovative open observability solution aimed at streamlining identification and resolution of crucial incidents within the mainframe environment.
Given the crescendo of excitement encircling Broadcom presently, some sharp-eyed investors may be eyeing the company’s dividend potential. The current scenario paints Broadcom with a dividend yield of 1.56%, equating to a quarterly payout of $5.25 per share ($21.00 annually).
For those pondering how to rake in $500 per month from Broadcom, the arithmetic commences with a $6,000 annual target ($500 x 12 months).
The subsequent step involves dividing this sum by Broadcom’s $21.00 dividend: $6,000 / $21.00 = 286 shares
Thus, an investor would need to stake a claim on approximately $386,100 worth of Broadcom stock, specifically 286 shares to generate a monthly dividend bounty of $500.
Should one opt for a more modest goal of $100 monthly ($1,200 annually), the same equations apply: $1,200 / $21.00 = 57 shares, or $76,950 to banish budget woes with a monthly dividend stream of $100.
Keep in mind that dividend yields remain dynamic, fluctuating over time as dividend payouts and stock prices experience their own dance.
The dividend yield formula entails dividing the annual dividend by the prevailing stock price – as the stock price meanders, so does the dividend yield.
For instance, consider a stock shelling out $2 annually with a current price of $50 – that translates to a 4% yield. However, should the stock ascend to $60, the yield dwindles to 3.33% ($2 / $60).
Conversely, a drop in stock price to $40 would push the yield to 5% ($2 / $40).
Additionally, alterations in the dividend payment itself can sway the yield, pivoting with the company’s decision to raise or curtail dividends, irrespective of stock price stability.
AVGO Price Action: Broadcom shares notched a 0.5% uptick to close at $1,350.00 on the preceding trading day.
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