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How To Earn $500 A Month From Microsoft Stock
Microsoft Corporation (NASDAQ: MSFT ) shares closed higher on Wednesday .
Microsoft announced Tuesday that its board of directors declared a quarterly dividend of 83 cents per share, which is payable March 13, 2025, to shareholders of record on Feb. 20, 2025.
With the recent buzz around Microsoft, some investors may be eyeing potential gains from the company's dividends, too. As of now, Microsoft offers an annual dividend yield of 0.76%. That’s a quarterly dividend amount of 83 cents per share ($3.32 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 $790,418 or around 1,807 shares. For a more modest $100 per month or $1,200 per year, you would need $157,909 or around 361 shares.
To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($3.32 in this case). So, $6,000 / $3.32 = 1,807 ($500 per month), and $1,200 / $3.32 = 361 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.
MSFT Price Action: Shares of Microsoft gained 1.4% to close at $437.42 on Wednesday.
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This article How To Earn $500 A Month From Microsoft Stock originally appeared on Benzinga.com
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