How To Earn $500 A Month From Progress Software Stock Ahead Of Q2 Earnings Report

Author: Avi Kapoor | June 21, 2024 09:05am

Progress Software Corporation (NASDAQ:PRGS) will release its second quarter financial results, after the closing bell on Tuesday, June 25.

Analysts expect the Burlington, Massachusetts-based company to report quarterly earnings at 95 per share, down from $1.06 per share in the year-ago period. Progress Software is expected to post revenue of $168.42 million, according to data from Benzinga Pro.

On March 26, Progress Software posted better-than-expected first-quarter results.

With the recent buzz around Progress Software, some investors may be eyeing potential gains from the company's dividends. As of now, Progress Software has a dividend yield of 1.45%. That’s a quarterly dividend amount of 17.50 cents a share (70 cents a year).

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

Next, we take this amount and divide it by Progress Software's $0.70 dividend: $6,000 / $0.70 = 8,571 shares

So, an investor would need to own approximately $413,122 worth of Progress Software, or 8,571 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 / $0.70 = 1,714 shares, or $82,615 to generate a monthly dividend income of $100.

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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.

PRGS Price Action: Shares of Progress Software fell 1.6% to close at $48.20 on Thursday.