Apple Inc. (NASDAQ:AAPL) stock closed at $188.08 at the end of trading on February 8. In the preceding 52 weeks, the stock price has fluctuated from $143.90 to $199.62.
On February 1, Apple reported its first quarter earnings results for the quarter ending December 30, 2023. The Consolidated Statements of Cash Flows showed payments for dividends and dividend equivalents of $3.825 billion, up from $3.768 billion in the same period in 2022.
Based on its current quarterly dividend of $0.24 per share, the annualized dividend for Apple is $0.96 per share. Using the stock price at the close on February 8, its dividend yield is about 0.51%.
How Can You Earn $500 Per Month As An Apple Investor?
If you have an earnings target of $500 per month or $6,000 annually from Apple’s dividends, your investment value needs to be $1,176,471 which is 6,255 shares at $188.08 each. But if you reduce your earnings target to $100 per month, your investment value drops to $235,294 or 1,251 shares.
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How to calculate your estimated value of investments using dividend yields: To calculate an estimated investment value, you need two critical variables — the desired annual earnings target ($6,000 or $1,200) and the dividend yield of the stock (0.51% in this case). So, $6,000 / 0.0051 = $1,176,471 to generate an income of $500 per month, and $1,200 / 0.0051 = $235,294 for $100 per month.
To calculate the dividend yield, you need to divide the annual dividend payments by the stock’s current price. It is important to note that a company’s dividend yield may change over time. This is because of the fluctuations in stock prices and changes in dividend policies on a rolling basis. Assuming that the stock price does not fluctuate or the capital appreciation is not factored into the calculations, the dividend value and its yield are positively correlated.
For instance, assume a stock that pays $2 as an annual dividend is priced at $50. Its dividend yield would be $2 / $50 = 4%. If the stock price rises to $60, the dividend yield drops to 3.33% ($2 / $60). A drop in stock price to $40 will have an inverse effect and increase the dividend yield to 5% ($2 / $40).
Disclaimer: This calculation is according to the price per share on Feb. 8 using an annualized dividend. The price of Apple stock at the end of trading on Feb. 8 was $188.08.
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This article How to Earn $500 Per Month From Apple Stock originally appeared on Benzinga.com
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