How Much Would It Take To Earn $100 A Month From Microsoft Stock?
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Microsoft Corporation (NASDAQ:MSFT) develops and supports software, services, devices and solutions worldwide. It is the third-largest company in the world, with a market capitalization of $3.07 trillion.
It will report its Q2 2025 earnings on Jan. 28, 2025. Wall Street analysts expect the company to post an EPS of $3.23, up from $2.93 in the year-ago period. According to data from Benzinga Pro, quarterly revenue is expected to be $69.76 billion, up from $62.02 billion in the year-ago period.
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The 52-week range of Microsoft stock price was $362.90 to $468.35.
Microsoft’s dividend yield is 0.80%. During the last 12 months, it paid $3.32 per share in dividends.
On Oct. 30, the company announced its Q1 2025 earnings, posting revenues of $65.60 billion, up 16% year-over-year, beating the Street consensus estimate of $64.51 billion, as reported by Benzinga.
The company reported first-quarter earnings per share of $3.30, beating a Street consensus estimate of $3.09. Microsoft’s operating income was $65.6 billion in the first quarter, up 14% year-over-year. “AI-driven transformation is changing work, work artifacts and workflow across every role, function and business process,” Microsoft CEO Satya Nadella said.
Check out this article by Benzinga, which evaluates Microsoft against peers in the software industry.
If you want to make $100 per month –$1,200 annually – from Microsoft dividends, your investment value needs to be approximately $150,000, which is around 362 shares at $414.60 each.
Understanding the dividend yield calculations: When estimating, you need two key variables – the desired annual income ($1,200) and the dividend yield (0.80% in this case). So, $1,200 / 0.008 = $150,000 to generate an income of $100 per month.
You can calculate the dividend yield by dividing the annual dividend payments by the stock’s current price.
The dividend yield can change over time due to fluctuating stock prices and dividend payments on a rolling basis.
For instance, assume a stock that pays $2 as an annual dividend is priced at $50. Its dividend yield would be $2/$50 = 4%. If the stock price rises to $60, the dividend yield drops to 3.33% ($2/$60). A drop in stock price to $40 will have an inverse effect and increase the dividend yield to 5% ($2/$40).
In summary, income-focused investors may find Microsoft stock an attractive option for making a steady income of $100 per month by owning 362 shares of stock. There may be more upside as investors benefit from the company’s consistent dividend hikes. Microsoft has raised its dividend consecutively for the last 19 years.
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