How To Earn $500 A Month From Apple Stock

On Tuesday at the “Awe Dropping” event, Apple Inc. AAPL unveiled its iPhone 17 lineup.

Apple has reworked the iPhone 17 Pro lineup, moving away from titanium in favor of a precision-machined aluminum unibody. The new design incorporates a colorful oxide layer and features a full-width camera plateau that also houses antennas.

On Thursday, Phillip Securities analyst Helena Wang downgraded the rating for Apple from Neutral to Reduce and announced a $200 price target, while DA Davidson analyst Gil Luria downgraded the stock from Buy to Neutral and maintained the price target of $250.

With the recent buzz around Apple, some investors may be eyeing potential gains from the company’s dividends too. As of now, Apple offers an annual dividend yield of 0.45%, which is a semi-annual dividend amount of 26 cents per share ($1.04 a year).  

So, how can investors exploit its dividend yield to pocket a regular $500 monthly?

To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $1,327,043 or around 5,769 shares. For a more modest $100 per month or $1,200 per year, you would need $265,455 or around 1,154 shares.

To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($1.04 in this case). So, $6,000 / $1.04 = 5,769 ($500 per month), and $1,200 / $1.04 = 1,154 shares ($100 per month).

Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.

How that works: The dividend yield is computed by dividing the annual dividend payment by the stock’s current price.

For example, if a stock pays an annual dividend of $2 and is currently priced at $50, the dividend yield would be 4% ($2/$50). However, if the stock price increases to $60, the dividend yield drops to 3.33% ($2/$60). Conversely, if the stock price falls to $40, the dividend yield rises to 5% ($2/$40).

Similarly, changes in the dividend payment can impact the yield. If a company increases its dividend, the yield will also increase, provided the stock price stays the same. Conversely, if the dividend payment decreases, so will the yield.

AAPL Price Action: Shares of Apple gained 1.4% to close at $230.03 on Thursday.

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