How To Earn $500 A Month From Microsoft Stock As Tech Giant Launches New AI Service

Investors pushed shares of Microsoft Corporation MSFT higher Tuesday after the company announced a new artificial intelligence service. Here’s how investors can earn dividends from Microsoft stock with the company in the news.

What Happened: Microsoft said it is introducing a new AI service, Copilot, to Microsoft 365. The subscription-based service will give enterprise customers access to a generative AI assistant across their Microsoft 365 programs for an additional $30 per month, according to a CNBC report.

Copilot’s capabilities are varied, with the ability to rank incoming emails, summarize meetings, analyze spreadsheet data, offer writing prompts and more.

In addition to the AI subscription service, Microsoft announced an update to Bing Chat, its AI chatbot. Users can now upload a photo to Bing Chat to ask for more information on it, potentially changing how users interact with chatbots.

The tech giant — which recently invested $10 billion in OpenAI — could significantly increase its revenues, creating potential dividends for investors. But how does this translate to earning $500 from its stock?

Microsoft has a dividend yield of 0.79%, so if you’re targeting $500 in monthly dividend income, here’s how the math breaks down.

The $500 per month yield would translate to $6,000 per year. The $6,000 figure is then divided by Microsoft’s 0.79% dividend yield. The calculation would look like this: $6,000 / 0.0079 = $759,493.67.

So, to earn $500 per month from Microsoft dividends, you would need to invest about $759,493.67, or about 2,078 shares.

In contrast, if you're looking for a more modest amount, say $100 per month from dividends, you would need to invest about $151,898.73 or 416 shares.

Read also: How To Earn $500 A Month From AT&T Stock

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 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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