How To Earn $500 A Month From Apple Stock

Apple Inc (NASDAQ:AAPL) shares closed slightly higher on Wednesday.

With the recent buzz around Apple, and its federal lawsuit, some investors may be eyeing potential gains from the company's dividends. As of now, Apple offers an annual dividend yield of 0.41%, 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 $1,473,691 or around 5,769 shares. For a more modest $100 per month or $1,200 per year, you would need $294,789 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 rose 0.3% to close at $255.45 on Wednesday.

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