For many investors, the idea of earning a steady income through dividends is an attractive prospect. A look at Microsoft stock shows just how lucrative dividend investing can be if you own enough shares.
Microsoft has paid regular dividends for years, and as of 2024, it offers a dividend of $0.75 per share, equating to an annual payout of $3 per share. With the stock priced around $440 per share in January 2025, Microsoft offers a dividend yield of about 0.68%.
To earn $1,000 per month, or $12,000 annually, from Microsoft dividends, you’d need to own approximately 4,018 shares, which would require an investment of around $1.64 million at the current stock price of $409.14 per share (as calculated by Benzinga in 2024).
While it may seem like a substantial amount of money to invest, this example illustrates a key principle: earning significant income from dividend stocks requires a substantial initial investment. For those aiming to generate a reliable monthly income through dividends, owning a large amount of high-quality stocks, like Microsoft, can be an effective strategy — but it takes money to make money.
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