How To Earn $500 A Month From Apple Stock Ahead Of Q1 Earnings Report

Apple Inc. AAPL is expected to release earnings results for its fiscal first quarter, after the closing bell on Feb. 1, 2024.

Analysts expect the iPhone maker to report quarterly earnings at $2.10 per share on revenue of $118.03 billion, according to data from Benzinga Pro.

Apple has requested a U.K. tribunal to dismiss a lawsuit worth close to $1 billion. The lawsuit, brought forth by over 1,500 app developers, alleges that Cupertino imposes unfair App Store charges.

The company also launched its newest iPhone software update, iOS 17.3, and it comes with several innovative features.

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 0.49%, 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 dividends, 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 $1,219,875 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 $243,975 to generate a monthly dividend income of $100.

Also Read: Top 4 Consumer Stocks That May Collapse This Month

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 0.7% to close at $195.18 on Tuesday.

Read More: This Jeff Bezos-backed platform has made real estate investing as easy as ordering stuff on Amazon. Read how you can invest as little as $100 in its offerings

Photo: Shutterstock