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How To Earn $500 A Month From Oracle Stock Ahead Of Q2 Earnings

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How To Earn $500 A Month From Oracle Stock Ahead Of Q2 Earnings

Oracle Corporation (NYSE: ORCL ) will release its second quarter fiscal year 2025 results after the closing bell on Monday, Dec. 9.

Analysts expect the Austin, Texas-based company to report quarterly earnings at $1.48 per share, up from $1.34 per share in the year-ago period. Oracle is projected to report quarterly revenue of $14.12 billion, compared to $12.94 billion a year earlier, according to data from Benzinga Pro.

On Thursday, Guggenheim analyst John Difucci maintained Oracle with a Buy and raised the price target from $200 to $220, while Jefferies analyst Brent Thill maintained the stock with a Buy and boosted the price target from $190 to $220.

With the recent buzz around Oracle ahead of quarterly earnings, some investors may be eyeing potential gains from the company's dividends too. As of now, Oracle offers an annual dividend yield of 0.86%, which is a quarterly dividend amount of 40 cents per share ($1.60 a year).

To figure out how to earn $500 monthly from Oracle, we start with the yearly target of $6,000 ($500 x 12 months).

Next, we take this amount and divide it by Oracle's $1.60 dividend: $6,000 / $1.60 = 3,750 shares.

So, an investor would need to own approximately $698,400 worth of Oracle, or 3,750 shares to generate a monthly dividend income of $500.

Assuming a more conservative goal of $100 monthly ($1,200 annually), we do the same calculation: $1,200 / $1.60 = 750 shares, or $139,680 to generate a monthly dividend income of $100.

View more earnings on ORCL

Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.

The dividend yield is calculated by dividing the annual dividend payment by the current stock price. As the stock price changes, the dividend yield will also change.

For example, if a stock pays an annual dividend of $2 and its current price is $50, its dividend yield would be 4%. However, if the stock price increases to $60, the dividend yield would decrease to 3.33% ($2/$60).

Conversely, if the stock price decreases to $40, the dividend yield would increase to 5% ($2/$40).

Further, the dividend payment itself can also change over time, which can also impact the dividend yield. If a company increases its dividend payment, the dividend yield will increase even if the stock price remains the same. Similarly, if a company decreases its dividend payment, the dividend yield will decrease.

ORCL Price Action : Shares of Oracle fell by 1% to close at $186.24 on Thursday.


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This article How To Earn $500 A Month From Oracle Stock Ahead Of Q2 Earnings originally appeared on Benzinga.com

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