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