Apple Inc. (NASDAQ:AAPL) will release earnings results for its fourth quarter, after the closing bell on Thursday, Oct. 31.
Wall Street expects Apple to report quarterly earnings at $1.6 per share, up from $1.36 per share in the year-ago period. The company projects to report revenue of $94.58 billion after the closing bell, according to Benzinga Pro.
Apple has beaten analyst estimates for revenue in six straight quarters and nine of the last 10 quarters overall.
With the recent buzz around Apple ahead of quarterly earnings, some investors may be eyeing potential gains from the company’s dividends. As of now, Apple offers an annual dividend yield of 0.43%. That’s a quarterly dividend of 25 cents per share ($1.00 a year).
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To figure out how to earn $500 monthly from Apple, we start with the yearly target of $6,000 ($500 x 12 months).
Next, we take this amount and divide it by Apple’s $1.00 dividend: $6,000 / $1.00 = 6,000 shares.
So, an investor would need to own approximately $1,380,600 worth of Apple, or 6,000 shares to generate a monthly dividend income of $500.
Assuming a more conservative goal of $100 monthly ($1,200 annually), we do the same calculation: $1,200 / $1.00 = 1,200 shares, or $276,120 to generate a monthly dividend income of $100.
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Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.
The dividend yield is calculated by dividing the annual dividend payment by the current stock 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, its 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 decreases to $40, the dividend yield would increase to 5% ($2/$40).
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Further, the dividend payment itself can also change over time, which can also impact 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 decreases its dividend payment, the dividend yield will decrease.
AAPL Price Action: Shares of Apple fell by 1.5% to close at $230.10 on Wednesday.
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