When it comes to explaining the power of stock market investing, one example that frequently makes the rounds is how rich you would be now if you had invested in Microsoft when the software company went public in 1986.
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For example, $1,000 worth of Microsoft stock at its IPO has since ballooned in value to roughly $6 million, thanks to a series of stock splits over the years. And today, you could earn about $1,000 a month just on Microsoft dividends alone — if you have enough shares.
Dishing Out Dividends
A 2024 analysis from Benzinga, published in March, looked at the potential dividend payout if you are invested in Microsoft stock. The Redmond, Washington-based tech giant currently pays a dividend of $0.75 per share, which equals an annual dividend of $3 per share.
At the time of the Benzinga analysis, Microsoft’s stock price was $409.14 a share. It has increased since then, currently sitting at around $440 in January 2025. However, at the former price of $409.14, the stock’s dividend yield equaled 0.72%.
So how could you earn $1,000 just for being a Microsoft investor?
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The Rich Get Richer
Benzinga assumed that your earnings target is $1,000 per month, or $12,000 a year, from Microsoft’s dividends. In this case, your estimated investment value would be about $1,643,836, which is roughly 4,018 shares at $409.14 each.
As Benzinga explained, to calculate your estimated investment value you need two variables: your desired annual earnings target ($12,000) and the dividend yield of the stock (0.73%). Here’s the formula: $12,000 / 0.0073 = $1,643,835.62 to generate an income of $1,000 per month.
Keep in mind that the Benzinga calculation was done months ago, when Microsoft’s stock sold for $409.14 a share. The numbers have since changed, along with Microsoft’s share price.
But this much remains true: To earn $1,000 a month on Microsoft dividends, you already need to have a nice pile of money — in this case, more than $1.6 million worth of Microsoft stock. Once again, it takes money to make money.
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This article originally appeared on GOBankingRates.com: Microsoft Stock Secrets: How To Make $1,000 a Month With Dividends
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
