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Apple. (NASDAQ:AAPL) stock price closed at $188.08 at the close of trading on February 8th. Over the past 52 weeks, the stock price has ranged from $143.90 to $199.62.
On February 1, Apple reported its first quarter financial results for the quarter ending December 30, 2023. The consolidated statement of cash flows showed dividends and dividend equivalent payments of $3,825 million, an increase from $3,768 million in the same period in 2022.
Based on the current quarterly dividend of $0.24 per share, Apple’s annual dividend will be $0.96 per share. Based on the stock price as of February 8th, the dividend yield is approximately 0.51%.
How can I make $500 a month as an Apple investor?
If you have an income goal of $500 per month or $6,000 per year from Apple’s dividends, your investment value would be $1,176,471 (6,255 shares at $188.08 per share). However, if you lower your revenue goal to $100 per month, the value of your investment decreases to $235,294 or 1,251 shares.
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How to use dividend yield to calculate the estimated value of an investment: To calculate the estimated investment value, you need two important variables: your desired annual return goal ($6,000 or $1,200) and the stock’s dividend yield (0.51% in this case). So, to generate $500 per month of income, $6,000 / 0.0051 = $1,176,471, and for $100 per month, $1,200 / 0.0051 = $235,294.
To calculate dividend yield, you need to divide the annual dividend by the stock price. It’s important to note that a company’s dividend yield can change over time. This is because stock prices fluctuate and dividend policies change regularly. Assuming that the stock price does not fluctuate or that capital appreciation is not taken into account in the calculation, the amount of the dividend and its yield are positively correlated.
For example, suppose a stock that pays $2 in annual dividends has a price of $50. The dividend yield would be $2 / $50 = 4%. If the stock price rises to $60, the dividend yield drops to 3.33% ($2 / $60). If the stock price falls to $40, the opposite effect occurs and the dividend yield increases to 5% ($2 / $40).
Disclaimer: This calculation is based on the February 8 price per share using the annualized dividend. At the close of trading on February 8, Apple’s stock price was $188.08.
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This article, “How to make $500 a month from Apple stocks” was originally published on Benzinga.com
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