Apple Inc. (NASDAQ:AAPL) shares closed lower during Tuesday’s session.

Apple is looking to cut prices on its iPhones in China by as much as 500 yuan ($70) amid increasing competition in the Chinese market, according to Reuters.

The tech giant, meanwhile, has potentially sidestepped an import ban that loomed over its latest Apple Watch models stemming from a patent infringement dispute with medical technology firm Masimo Corporation, according to a recent report.

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 0.52%, 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 $1,147,688 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 $229,538 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.

AAPL Price Action: Shares of Apple fell 1.2% to close at $183.63 on Tuesday.

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