How To Earn $500 A Month From Apple Stock After Upbeat Q4 Results

Apple, Inc. AAPL reported stronger-than-expected earnings and sales results for its fourth quarter on Thursday.

Apple reported fourth-quarter earnings of $1.46 per share, ahead of the consensus estimate of $1.39 per share. Revenue came in at $89.5 billion compared to the $90.15 billion the tech giant reported a year ago, beating the revenue expectation from analysts of $89.28 billion.

Revenue of $43.805 billion for the iPhone came in below expectations. The Street was anticipating a figure of $44 billion, according to CNBC.

With the buzz around Apple following upbeat earnings, some investors may be eyeing potential gains from the company’s dividends. As of now, Apple offers an annual dividend yield of 0.54%, which is a quarterly dividend amount of 24 cents per share (96 cents a year).

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 $1,109,813 or around 6,250 shares. For a more modest $100 per month or $1,200 per year, you would need $221,963 or around 1,250 shares.

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To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($0.96 in this case). So, $6,000 / 0.96= 6,250 ($500 per month), and $1,200 / 0.96 = 1,250 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 were down 1.39% at $1175.10 during early trading Friday.

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