Meta Platforms, Inc. (NASDAQ:META) is scheduled to post earnings results for its first quarter, after the closing bell on Wednesday.
Analysts expect the Menlo Park, California-based company to report quarterly earnings at $4.32 per share, up from $2.20 per share in the year-ago period. Meta is projected to report quarterly revenue of $36.16 billion, up from $28.64 billion in the same quarter last year, according to data from Benzinga Pro. Meta has beaten revenue estimates from analysts in six straight quarters.
On April 22, Keybanc analyst Justin Patterson maintained Meta Platforms with an Overweight rating and lowered the price target from $575 to $555, while JMP Securities analyst Andrew Boone reiterated the stock with a Market Outperform and maintained a $550 price target.
With the recent buzz around Meta Platforms, some investors may be eyeing potential gains from the company’s dividends. As of now, Meta Platforms has a dividend yield of 0.40%, which is a quarterly dividend amount of 50 cents a share ($2.00 a year).
To figure out how to earn $500 monthly from Meta Platforms, we start with the yearly target of $6,000 ($500 x 12 months).
Next, we take this amount and divide it by Meta’s $2.00 dividend: $6,000 / $2.00 = 3,000 shares
So, an investor would need to own approximately $1,488,300 worth of Meta Platforms, or 3,000 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 / $2.00 = 600 shares, or $297,660 to generate a monthly dividend income of $100.
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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.
META Price Action: Shares of Meta Platforms rose 3% to close at $496.10 on Tuesday.
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