A company called Applied Materials makes machines that help make other things. They are doing well and might do even better soon when they tell everyone how much money they made. Some people think this company is a good place to put your money because it pays you some money every few months just for owning its shares. To earn $500 per month, you would need to have a lot of money saved up or borrowed and buy many shares of the company's stock. Read from source...
1. The title is misleading and clickbait-ish. It implies that the reader can easily earn $500 a month from Applied Materials stock without providing any evidence or clear strategy. A more accurate and informative title would be something like "How To Potentially Increase Your Income From Applied Materials Stock Dividends".
2. The article does not provide any historical data or analysis on the dividend yield performance of Applied Materials over time, which could help investors make a more informed decision based on past trends and volatility.
3. The article compares Applied Materials to other stock brokers and online platforms without explaining how they are relevant or useful for the readers' goal of earning dividends from Applied Materials. This creates confusion and distraction from the main topic.
4. The article uses vague terms like "recent buzz" and "buy rating" without citing any sources or providing any context. It also mentions analyst ratings without disclosing their track record, incentives, or potential conflicts of interest. This undermines the credibility and reliability of the information presented.
5. The article assumes that investors want to earn dividends from Applied Materials without considering other alternatives or objectives they may have, such as capital appreciation, diversification, risk management, etc. It also ignores the fact that dividend stocks may not always outperform non-dividend paying stocks in the long run and can be subject to market fluctuations and tax implications.
Based on the information provided in the article, I can suggest several ways to earn $500 per month from Applied Materials stock ahead of Q1 earnings report. Here are some possible scenarios:
Scenario 1: Investing a large amount upfront and collecting dividends
- You could buy 4,688 shares of AMAT at the current market price of around $175 per share. This would cost you approximately $832,060 in total.
- You would receive a quarterly dividend of $1.28 per share, which amounts to $5,184 per quarter or $20,736 per year. This is more than enough to achieve your monthly goal of $500.
- The main risk in this scenario is that the stock price might drop significantly before the Q1 earnings report, eroding your capital gain and increasing your cost basis. You would need to monitor the market closely and be ready to sell if the price falls below a certain threshold. Alternatively, you could use a stop-loss order or a limit order to minimize your losses.
Scenario 2: Investing a smaller amount and using options contracts
- You could buy 938 shares of AMAT at the current market price of around $175 per share. This would cost you approximately $164,050 in total.
- Instead of holding the shares, you could sell call options on them to generate income. For example, you could sell a March 2022 $180 call option for $9.30 per contract, which would yield you $8,976 in premium. This is equivalent to an annualized return of 45%.
- You would still receive the quarterly dividend of $1.28 per share, which amounts to $5,184 per year or $432 per month. By selling call options, you could increase your income to $960 per month, exceeding your goal by $50.
- The main risk in this scenario is that the stock price might rise above the strike price of your option contracts, resulting in having to sell your shares at a lower profit or even a loss. You would need to monitor the market closely and adjust your option strikes accordingly. Alternatively, you could use a spread strategy or a straddle strategy to hedge your position and reduce your risk.