June 5, 2023 6:44 PM | 2 minute read
As apple inc (NASDAQ:AAPL) delivers its WWDC 2023 keynote, highlighting new technologies and products like the 15-inch MacBook Air, Mac Studio with M2 Max and M2 Ultra, iOS 17 for iPhone, iPadOS 17 for iPad, and VR headsets Vision Pro, Benzinga wants to remind investors of another attractive feature of the tech giant: dividends.
More specifically, this is the number of Apple shares an investor needs to own to earn $500 per month.
Apple, known for its steady and rising dividend payments, currently offers a dividend yield of 0.52%. Using its performance, the value of Apple shares needed to reach a certain level of dividend income can be calculated.
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To determine how much Apple would need to have an investor to generate $500 per month in dividends, we can start by calculating the required annual dividend income: $500 x 12 months = $6,000.
Next, divide the amount by Apple’s 0.52% dividend yield: $6,000 / 0.0052 = $115,384.61
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This means that an investor would need to own approximately $115,384.61 of Apple, or 637 shares to generate a monthly dividend income of $500.
Also Read: If You Invested $1,000 Into Apple When The ‘AR Headphones’ Rumors Started, Here’s What You’d Have Now
Please note that the dividend yield may change on an ongoing basis, as the dividend payout and share price fluctuate over time.
The dividend yield is calculated by dividing the annual dividend payment by the current share 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, your 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 declines to $40, the dividend yield would increase to 5% ($2/$40).
In addition, the dividend payment itself can also change over time, which can also affect 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 reduces its dividend payout, the dividend yield will decrease.
Read Next: MacBook Air Transformed: Apple Unveils Thinnest 15-Inch Laptop Powered by M2 Chip at WWDC 2023
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