How To Earn $500 A Month From Apple After New iPhone Launch

Benzinga · 09/15/2023 12:47

Apple Inc (NASDAQ:AAPL) announced a plethora of products and features at the Wonderlust event on Tuesday.

Keybanc analyst Brandon Nispel reiterated Apple with an Overweight and maintained a $200 price target.

With the buzz around Apple following the new iPhone launch, 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 $0.24 a share ($0.96 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 $1,098,375 or around 6,250 shares. For a more modest $100 per month or $1,200 per year, you would need $219,675 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 shares ($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.

Price Action: Shares of Apple gained 0.9% to close at $175.74 on Thursday.

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