How to Earn $500 a Month From Apple Stock

Apple Inc. (NASDAQ: AAPL) shares saw a modest uptick during Monday's trading session.

According to Dan Ives, an analyst at Wedbush Securities, Apple is poised to achieve the remarkable milestone of a $4 trillion market capitalization by "early 2025." This growth is anticipated to be fueled by robust iPhone sales coupled with advancements in artificial intelligence.

Since the beginning of this year, the tech behemoth's stock has soared nearly 40%, closing at $255 per share on Monday, which gives it a market cap of approximately $3.86 trillion. This performance positions Apple ahead of competitors like NVIDIA Corp (NASDAQ: NVDA) at $3.35 trillion and Microsoft Corp (NASDAQ: MSFT) at $3.22 trillion.

As Apple's popularity surges, many investors may start to consider not only the appreciation in share price but also the potential income from the company's dividend. Currently, Apple provides a modest annual dividend yield of 0.39%, translating to a quarterly dividend of 25 cents per share, or $1.00 annually.

So, how can an investor turn this dividend yield into a consistent monthly income of $500?

To achieve a monthly income of $500 (or $6,000 annually) from dividends, one would need to invest roughly $1,531,620, which equates to around 6,000 shares of Apple. For those seeking a lower monthly income of $100 (or $1,200 annually), the required investment would be about $306,324, or approximately 1,200 shares.

Calculation Method: The calculation involves dividing the desired annual income ($6,000 or $1,200) by the annual dividend payment ($1.00 in this instance). For example, to find the number of shares needed for a $500 monthly income: $6,000 / $1.00 = 6,000 shares. For a $100 monthly income, the calculation would be $1,200 / $1.00 = 1,200 shares.

It's essential to note that the dividend yield can fluctuate over time. Factors such as changing stock prices and dividend payments directly influence this yield.

Understanding Dividend Yield: Dividend yield is computed by dividing the annual dividend payment by the current stock price. For instance, if a stock pays an annual dividend of $2 and is priced at $50, the dividend yield would be 4% ($2/$50). If the stock's price rises to $60, the yield falls to 3.33% ($2/$60). Conversely, if the price drops to $40, the yield would increase to 5% ($2/$40).

Similarly, modifications to the dividend amount can impact the yield. An increase in the dividend would raise the yield, assuming the stock price remains constant. If the dividend decreases, the yield would likely decrease as well.

AAPL Price Movement: On Monday, shares of Apple gained 0.3%, closing at $255.27.

In summary, achieving a monthly income of $500 through Apple’s dividends is possible, but it requires significant capital investment. As with all investments, it is crucial to conduct thorough research and consult with financial advisors when necessary.

Apple, Investing, Dividends