Analysts expect the tech company to report quarterly earnings at $1.65 per share, up from $1.24 per share in the year-ago period. Broadcom projects to report quarterly revenue at $15.83 billion, compared to $13.07 billion a year earlier, according to data from Benzinga Pro.
The company has beaten analyst estimates for revenue in two straight quarters and in eight of the last 10 quarters overall.
Some investors are eyeing potential gains from Broadcom's annual dividend yield of 0.78%. That’s a quarterly dividend amount of 59 cents per share ($2.36 a year).
To earn $500 monthly from Broadcom, start with the yearly target of $6,000 ($500 x 12 months).
Next, we take this amount and divide it by Broadcom's $2.36 dividend: $6,000 / $2.36 = 2,542 shares.
So, an investor would need to own approximately $768,675 worth of Broadcom, or 2,542 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 / $2.36 = 508 shares, or $153,614 to generate a monthly dividend income of $100.
Note that dividend yield can change on a rolling basis; the dividend payment and the stock price 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.
AVGO Price Action: Shares of Broadcom rose by 1.4% to close at $302.39 on Wednesday.
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