Apple Shares Worth $3.6M Needed to Earn $12K in Annual Dividends

If you're looking to invest in dividend-paying stocks for passive income, Apple (AAPL) is a good option. However, if you're hoping to get $12,000 in annual dividend income from Apple, how many shares would you need to buy? To calculate this, divide the desired annual dividend income by Apple's quarterly dividend of $0.27 per share, which amounts to $1.08 annually.

Using this math, 11,111 shares are needed to reach $12,000 in annual dividend income. Multiply that number by Apple's recent price per share, which is $319.97, and you'll see how much those shares would cost: $3,611,111.

However, it's worth considering the current valuation of Apple's shares, as their recent forward-looking price-to-earnings (P/E) ratio is 32, slightly above the five-year average of 28. Additionally, Apple's dividend yield is low at 0.33%, but it has been growing.

It's also worth noting that while Apple's dividend income may not be as significant as its price appreciation over time. The company's shares have averaged annual returns of 24% over the past 15 years, making it a potentially attractive investment for long-term growth.