Benzinga - by Avi Kapoor, Benzinga Staff Writer.
Apple Inc. (NASDAQ: AAPL) shares settled lower on Monday after new data showed that Apple smartphone shipments fell approximately 10% in the first quarter.
Research firm IDC reported on Sunday that Samsung has overtaken Apple as the top global phone maker with 20.8% market share, per Reuters. The report indicates that Apple’s market share fell to 17.3% in the first quarter after sales dropped by about 10%, while global smartphone shipments increased 7.8% to 289.4 million.
Apple is expected to release earnings results for its second quarter on May 2, 2024. Analysts expect the iPhone maker to report quarterly earnings at $1.51 per share on revenue of $90.52 billion, according to data from Benzinga Pro.
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 0.56%, which is a quarterly dividend amount of 24 cents per share (96 cents 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 $1,079,313 or around 6,250 shares. For a more modest $100 per month or $1,200 per year, you would need $215,863 or around 1,250 shares.
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To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($0.96 in this case). So, $6,000 / $0.96 = 6,250 ($500 per month), and $1,200 / $0.96 = 1,250 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 fell 2.2% to close at $172.69 on Monday.
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