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Apple Inc. (NASDAQ:AAPL) shares closed slightly higher on Tuesday.
Apple is reportedly changing its approach to software updates. The technology giant appears to be opting for a staggered rollout of new features instead of bundling everything into annual iOS releases.
In his latest weekly “Power On” newsletter, Bloomberg columnist Mark Gurman said Cupertino is planning a major update this spring with iOS 18.4.
With the recent buzz surrounding Apple, some investors may also be looking at potential gains from the company’s dividends. As of now, Apple offers an annual dividend yield of 0.43%, which equates to a quarterly dividend of 25 cents per share ($1.00 per year).
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So how can investors leverage the dividend yield to put $500 in their pocket every month?
To earn $500 per month or $6,000 per year from dividends alone, you’ll need an investment of about $1,410,360, or about 6,000 shares. For a more modest amount of €100 per month or €1,200 per year, you need €282,072, or about 1,200 shares.
Calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($1.00 in this case). So $6,000 / $1.00 = 6,000 ($500 per month) and $1,200 / $1.00 = 1,200 shares ($100 per month).
Keep in mind that the dividend yield can be constantly changing because the dividend payout and the stock price both fluctuate over time.
How that works: The dividend yield is calculated by dividing the annual dividend payment by the current share price.
For example, if a stock pays an annual dividend of €2 and is currently worth €50, the dividend yield is 4% (€2/€50). However, if the stock price rises 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).
Likewise, changes in dividend payments can affect returns. If a company increases its dividend, the yield will also increase, provided the share price remains the same. Conversely, if the dividend payment decreases, the return also decreases.
AAPL Price Action: Shares of Apple rose 0.9% to close at $235.06 on Tuesday.
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