Investors keen on capitalizing on potential gains from Intel Corporation (NASDAQ: INTC) may also be intrigued by the prospect of leveraging the company’s dividend yield to generate regular income. Despite Intel’s recent disappointing sales results and weak earnings per share (EPS) guidance, its dividend yield remains an attractive feature for income-seeking investors.
As of now, Intel offers an annual dividend yield of 1.64%, translating to a quarterly dividend amount of 12.5 cents per share or 50 cents per year. For investors aiming to secure a consistent monthly income of $500 or an annual income of $6,000 from Intel’s dividends alone, they would need to hold approximately $365,640 worth of Intel shares, which equates to around 12,000 shares. On the other hand, for those seeking a more modest monthly income of $100 or an annual income of $1,200, an investment of about $73,128 or approximately 2,400 shares would be required.
To calculate the number of shares needed to achieve a desired annual income from dividends, one can simply divide the desired annual income by the dividend amount per share. For instance, to earn $6,000 annually from Intel’s dividends at a dividend rate of 50 cents per share, investors would divide $6,000 by $0.50 to obtain 12,000 shares.
It’s essential to recognize that the dividend yield can fluctuate over time as both the dividend payment and the stock price vary. The dividend yield is calculated 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). However, changes in the stock price or dividend payment can impact the yield. If the stock price increases to $60, the dividend yield would decrease to 3.33% ($2 / $60), and vice versa.
Despite fluctuations in the dividend yield, Intel’s consistent dividend payments can provide investors with a reliable source of income, making it an attractive option for income-focused portfolios.
Following Intel’s first-quarter earnings report, its shares fell 2.8% to close at $30.47 on Tuesday. While the company faces challenges in its business operations, its dividend yield remains a key consideration for investors seeking income opportunities.
Before making any investment decisions, investors should conduct thorough research and consider their investment goals and risk tolerance. Consulting with a financial advisor can help assess individual circumstances and develop a suitable investment strategy tailored to their needs and objectives.
