How to Make $500 a Month on Microsoft Stock – Microsoft (NASDAQ:MSFT)

Microsoft Corporation MSFT Shares closed higher on Wednesday.

Microsoft announced Tuesday that its board of directors declared a quarterly dividend of 83 cents per share, payable on March 13, 2025, to shareholders of record as of February 20, 2025.

Given the recent enthusiasm for Microsoft, some investors may also be paying attention to potential gains from the company’s dividends. Currently, Microsoft offers an annual dividend yield of 0.76%. That equates to a quarterly dividend of 83 cents per share ($3.32 per year).

So how can investors use dividend yield to consistently rake in $500 a month?

To earn $500 per month or $6,000 per year from dividends alone, you would need to invest about $790,418, or about 1,807 shares. For a more modest $100 per month or $1,200 per year, you would need $157,909, or about 361 shares.

For calculation: Divide the desired annual income ($6,000 or $1,200) by the dividend (in this case, $3.32). So: $6,000 / $3.32 = 1,807 ($500 per month) and $1,200 / $3.32 = 361 shares ($100 per month).

Note that the dividend yield can change continuously as both the dividend payment and the share price fluctuate over time.

This is how it works: The dividend yield is calculated by dividing the annual dividend payment by the current price of the stock.

For example, if a stock pays an annual dividend of $2 and is currently trading at $50, the dividend yield is 4% ($2/$50). However, if the stock price rises to $60, the dividend yield drops to 3.33% ($2/$60). On the other hand, if the stock price falls to $40, the dividend yield increases to 5% ($2/$40).

Changes in dividend payments can also affect returns. When a company increases its dividend, the yield also increases as long as the share price remains the same. Conversely, if the dividend payment falls, the yield also falls.

MSFT price action: Shares of Microsoft rose 1.4% to close at $437.42 on Wednesday.

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