Analysts expect the San Francisco-based company to report earnings of $2.85 per share, up from $2.42 per share a year ago. Revenue is projected to reach $9.85 billion, compared to $8.9 billion in the same quarter last year, according to Benzinga Pro.
Amid heightened attention on Visa, some investors are also eyeing its dividend potential. The company currently offers a dividend yield of 0.66%, paying 59 cents per share semi-annually, or $2.36 annually.
So, how can investors exploit its dividend yield to pocket a regular $500 monthly?
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To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $903,605 or around 2,542 shares. For a more modest $100 per month or $1,200 per year, you would need $180,579 or around 508 shares.
To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($2.36 in this case). So, $6,000 / $2.36 = 2,542 ($500 per month), and $1,200 / $2.36 = 508 shares ($100 per month).
Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.
How that works: The dividend yield is computed by dividing the annual dividend payment by the stock’s current price.
For example, if a stock pays an annual dividend of $2 and is currently priced at $50, the dividend yield would be 4% ($2/$50). However, if the stock price increases to $60, the dividend yield drops to 3.33% ($2/$60). Conversely, if the stock price falls to $40, the dividend yield rises to 5% ($2/$40).
Similarly, changes in the dividend payment can impact the yield. If a company increases its dividend, the yield will also increase, provided the stock price stays the same. Conversely, if the dividend payment decreases, so will the yield.
V Price Action: Shares of Visa fell 0.4% to close at $355.47 on Monday.
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