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Apple Inc . (NASDAQ: AAPL ) shares closed higher on Thursday despite an overall decline in the stock market .

Consumer group Which? has filed a £3 billion ($3.81 billion) legal claim against Apple, accusing the tech giant of breaching UK competition law through its iCloud service.

Warren Buffett's Berkshire Hathaway Inc. (NYSE: BRK ) reduced stake in Apple from 400 million to 300 million shares. Thus, Berkshire has now cut its position in the Cupertino, California-based tech giant by over two-thirds since 2023's third quarter.

With the recent buzz around Apple, some investors may be eyeing potential gains from the company's dividends too. As of now, Apple offers an annual dividend yield of 0.44%, which is a quarterly dividend amount of 25 cents per share ($1.00 a year).

So, how can investors exploit its dividend yield to pocket a regular $500 monthly?

To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $1,369,320 or around 6,000 shares. For a more modest $100 per month or $1,200 per year, you would need $273,864 or around 1,200 shares.

To 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).

Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.

How that works: The dividend yield is computed by dividing the annual dividend payment by the stock’s current price.

For example, if a stock pays an annual dividend of $2 and is currently priced at $50, the dividend yield would be 4% ($2/$50). However, if the stock price increases 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).

Similarly, changes in the dividend payment can impact the yield. If a company increases its dividend, the yield will also increase, provided the stock price stays the same. Conversely, if the dividend payment decreases, so will the yield.

AAPL Price Action: Shares of Apple gained 1.4% to close at $228.22 on Thursday.

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This article How To Earn $500 A Month From Apple Stock originally appeared on Benzinga.com

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