Apple Pay Later Vs. AAPL Pay Later: Which Is More Rewarding?

At the Worldwide Developers Conference last June, Apple Inc AAPL announced its entry into the buy now, pay later market with the introduction of its Apple Pay Later program. Consumers can apply for loans ranging from $50 to $1,000 to make online purchases or in-app transactions through their respective Apple products.

Similar to other popular "buy now, pay later" services like Afterpay and Klarna, the new feature aims to offer users more flexibility in making payments.

While Apple consumers are buying now and paying later, Apple investors can buy the stock now and have the company pay them later in the form of dividends. As a financially robust and established company, the Cupertino, California-based tech giant has a strong history of paying dividends to its shareholders.

Check out Benzinga's dividend calendar.

Apple has a dividend yield of 0.58%. How many shares would an investor need to yield $200 per month in dividends?

For an investor interested in knowing how much stock they’d need to own to yield $200 per month, they would have to multiply 200 by 12, with the 12 being each month in the year.

With $2,400 being the result, the investor would then divide 2,400 by Apple’s dividend yield, which is 0.58%.

It would look something like this: 2400/0.058.

• With that being said, an investor would need to own $41,379, or 260 shares of the stock to yield $200 per month.
• Conversely, if an investor wanted to yield just $100 per month, they would need to own $20,689.50, or 130 shares of the stock.

Though it should be known that the 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.

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