How To Earn $500 A Month From Apple Stock Ahead Of WWDC 2024

Zinger Key Points
  • A more conservative goal of $100 monthly dividend income would require owning 1,200 shares of Apple.
  • An investor would need to own $1,166,880 worth of Apple to generate a monthly dividend income of $500.

Apple Inc. AAPL is set to unveil significant advancements at its annual Worldwide Developers Conference (WWDC) from June 10-14, 2024.

The Cupertino, California-based tech giant is expected to spotlight new AI-powered features across its core applications, along with updates to its operating systems, according to a recent note by Goldman Sachs analyst Michael Ng.

In a bid to simplify the login process for its users, the company reportedly plans to launch a new app called "Passwords" at its Worldwide Developers Conference or WWDC.

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 0.51%. That’s a quarterly dividend amount of 25 cents per share ($1.00 a year).

See Also: Wedbush’s Dan Ives Says WWDC 2024 Is ‘Most Important Event For Apple In Over A Decade’ – What To Expect

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 $1,166,880 or around 6,000 shares. For a more modest $100 per month or $1,200 per year, you would need $233,376 or around 1,200 shares.

To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($1.0 in this case). So, $6,000 / $1.00 = 6,000 ($500 per month), and $1,200 / $1.00 = 1,200 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 fell 0.7% to close at $194.48 on Thursday.

Check This Out: How to Find Dividend Stocks: Scan, Analyze, and Capture with Benzinga Pro

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