Marvell Technology, Inc. (NASDAQ:MRVL) is expected to release earnings results for its second quarter, after the closing bell on Thursday, Aug. 29.
Analysts expect the Wilmington, Delaware-based company to report quarterly earnings at 30 cents per share, down from 33 cents per share in the year-ago period. Marvell Technology is projected to post revenue of $1.25 billion, according to data from Benzinga Pro.
On Aug. 22, Rosenblatt analyst Hans Mosesmann maintained Marvell Tech with a Buy and maintained a $100 price target.
With the recent buzz around Marvell Technology, some investors may be eyeing potential gains from the company's dividends. As of now, Marvell Technology has a dividend yield of 0.4%. That's a quarterly dividend amount of 6 cents a share (24 cents a year).
To figure out how to earn $500 monthly from Marvell Technology, we start with a yearly target of $6,000 ($500 x 12 months).
Next, we take this amount and divide it by Marvell Technology's $0.24 dividend: $6,000 / $0.24 = 25,000 shares
So, an investor would need to own approximately $1.711 million worth of Marvell Technology, or 25,000 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 / $0.24 = 5,000 shares, or $342,200 to generate a monthly dividend income of $100.
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.
MRVL Price Action: Shares of Marvell Technology fell 1.8% to close at $68.44 on Wednesday.
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