How To Earn $500 A Month From Intuit Stock Ahead Of Q3 Earnings

Intuit Inc. (NASDAQ:INTU) will release its third-quarter financial results after the closing bell on Thursday, May 22.

Analysts expect the Mountain View, California-based company to report quarterly earnings at $10.91 per share, up from $9.88 per share in the year-ago period. Intuit projects quarterly revenue of $7.56 billion, compared to $6.74 billion a year earlier, according to data from Benzinga Pro.

On May 16, UBS analyst Taylor McGinnis maintained Intuit with a Neutral and raised the price target from $655 to $720.

With the recent buzz around Intuit, some investors may be eyeing potential gains from the company's dividends too. As of now, Intuit offers an annual dividend yield of 0.63%, which is a quarterly dividend amount of $1.04 per share ($4.16 a year).

To figure out how to earn $500 monthly from Intuit, we start with the yearly target of $6,000 ($500 x 12 months).

Next, we take this amount and divide it by Intuit's $4.16 dividend: $6,000 / $4.16 = 1,442 shares.

So, an investor would need to own approximately $951,691 worth of Intuit, or 1,442 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 / $4.16 = 288 shares, or $190,074 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 will 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.

INTU Price Action: Shares of Intuit fell by 1.7% to close at $659.98 on Wednesday.

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