Applied Materials, Inc. (NASDAQ:AMAT) will release its second-quarter financial results after the end of Thursday, May 15.

Analysts expect Santa Clara, California-based company to report quarterly earnings at a price of $2.31 per share, up from $2.09 per share a year ago. According to Benzinga Pro, the applied materials project’s quarterly revenue was $7.12 billion, compared with $6.65 billion in the same period last year.

On April 22, Barclays analyst Tom O'Malley maintained the stock's equal weight and lowered its target price from $190 to $160.

With the recent buzz surrounding applied materials, some investors may gain potential gains from the company's dividends. Currently, Applied Materials’ annual dividend yield is 1.06%, which is the quarterly dividend amount of 46 cents per share ($1.84 per year).

To figure out how to earn $500 per month from applied materials, our annual target is $6,000 ($500 x 12 months).

Next, we divide this amount into a $1.84 dividend of Applied Material: $6,000 / $1.84 = 3,261 shares.

As a result, investors will need to own approximately $567,871 of applied materials, i.e. 3,261 shares, to generate $500 in monthly dividend income.

Assuming the goal of $100 per month ($1,200 per year) is more conservative, we do the same calculation: $1,200/$1.84 = 652 shares, or $113,539 to generate a monthly dividend income of $100.

See more revenue from AMAT

Note that as both dividend payments and stock prices fluctuate over time, dividend yields may change on a rolling basis.

Dividend yield is calculated by dividing the annual dividend payment by the current stock price. As stock prices change, dividend yields will also change.

For example, if the stock has an annual dividend of $2 and currently has a price of $50, its dividend yield would be 4%. However, if the stock price rises to $60, the dividend yield will drop to 3.33% ($2/60).

Conversely, if the stock price drops to $40, the dividend yield will increase to 5% ($2/$40).

In addition, dividend payments themselves will also change over time, which will also affect dividend yields. If the company increases dividend payments, the dividend yield will increase even if the stock price remains the same. Likewise, if a company reduces its dividend payments, the dividend yield will drop.

AMAT Price Action: Shares of Applied Materials closed at $174.14 on Wednesday, closing at 0.6%.

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