How To Earn $500 A Month From Apple Stock

Apple Inc. (NASDAQ: AAPL) shares closed slightly higher on Tuesday, despite falling more than 6% over the past month.

Jim Cramer, the host of CNBC’s “Mad Money,” has urged investors to remain patient amid the recent challenges faced by the iPhone maker.

Apple is reportedly venturing into AI-driven advertising within its App Store, trialing an automated product similar to Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) Google’s Performance Max and Meta’s Advantage+.

With the recent buzz around Apple, some investors may be eyeing potential gains from the company’s dividends. As of now, Apple has a dividend yield of 0.55%, which is a quarterly dividend amount of 24 cents a share (96 cents a year).

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

Next, we take this amount and divide it by Apple’s $0.96 dividend: $6,000 / $0.96 = 6,250 shares

So, an investor would need to own approximately $1,082,688 worth of Apple, or 6,250 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 / $0.96 = 1,250 shares, or $216,538 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 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.

AAPL Price Action: Shares of Apple gained 0.3% to close at $173.23 on Tuesday.

Also Read: Top 5 Energy Stocks You May Want To Dump In March

Photo: ABCDstock/Shutterstock

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