How To Make $500 A Month With Microsoft As The Stock Hits An All-Time High

Microsoft Corp. MSFT shares closed higher on Monday, extending gains recorded in the previous sessions.

The company’s stock surged to a new high on Monday, adding to the tech giant’s outstanding year. Microsoft’s shares have surged around 58% year-to-date.

The company recently revealed plans to enhance its digital infrastructure in Quebec, introducing new AI and cybersecurity training programs.

With Microsoft hitting new highs, some investors may be eyeing potential gains from the company’s dividends. As of now, Microsoft has a dividend yield of 0.79%, which is a quarterly dividend amount of 75 cents a share ($3.00 a year).

To figure out how to earn $500 monthly from Microsoft dividends, we start with the yearly target of $6,000 ($500 x 12 months).

Next, we take this amount and divide it by Microsoft's $3.00 dividend: $6,000 / $3.00 = 2,000 shares

So, an investor would need to own approximately $757,220 worth of Microsoft, or 2,000 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 / $3.00 = 400 shares, or $151,444 to generate a monthly dividend income of $100.

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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.

MSFT Price Action: Shares of Microsoft gained 0.3% to close at $378.61 on Monday.

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