How To Earn $500 A Month From Microsoft Stock Ahead Of Q3 Earnings

by | Apr 28, 2026 | General

Microsoft Corporation (NASDAQ:MSFT) will release earnings for its third quarter after the closing bell on Wednesday, April 29.

Analysts expect the tech company to report quarterly earnings of $4.07 per share. That’s up from $3.46 per share in the year-ago period. The consensus estimate for Microsoft’s quarterly revenue is $81.43 billion (it reported $70.07 billion last year), according to Benzinga Pro.

Some investors may be eyeing potential gains from the company’s dividends. Microsoft has an annual dividend yield of 0.86% and a quarterly dividend of 91 cents per share ($3.64 per year).

To figure out how to earn $500 per month from Microsoft, start with the annual target of $6,000 ($500 x 12 months).

Next, we divide this amount by MSFT’s $3.64 dividend: $6,000 / $3.64 = 1,648 shares.

So, an investor would need to own approximately $700,103 worth of Microsoft, or 1,648 shares to generate a monthly dividend income of $500.

Assuming a more conservative goal of $100 monthly ($1,200 annually), we do the same calculation: $1,200 / $3.64 = 330 shares, or $140,191 to generate a monthly dividend income of $100.

Note that dividend yield can change on a rolling basis; the dividend payment and the stock price fluctuate over time.

The dividend yield is calculated by dividing the annual dividend payment by the current stock price. As the stock price changes, the dividend yield will also change.

For example, if a stock pays an annual dividend of $2 and its current price is $50, its dividend yield would be 4%. However, if the stock price increases to $60, the dividend yield would decrease to 3.33% ($2/$60).

Conversely, if the stock price decreases to $40, the dividend yield would increase to 5% ($2/$40).

Further, the dividend payment itself can also change over time, which can also impact the dividend yield. If a company increases its dividend payment, the dividend yield will increase even if the stock price remains the same. Similarly, if a company decreases its dividend payment, the dividend yield will decrease.

MSFT Price Action: Shares of Microsoft gained 0.1% to close at $424.82 on Monday.

Ahead of quarterly earnings, Oppenheimer analyst Brian Schwartz, on Monday, reiterated Microsoft with an Outperform rating and lowered the price target from $630 to $515.

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