Investing in Apple Hospitality REIT stock can be a lucrative opportunity for those looking to earn passive income. With a dividend yield of 7.06%, investors have the potential to earn a steady stream of income while also benefiting from potential stock price appreciation. In this article, we will explore how you can earn $100 in passive income by investing in Apple Hospitality REIT stock.
Apple Hospitality REIT is a self-advised real estate investment trust that focuses on income-producing real estate in the lodging sector in the U.S. The company is set to report its Q1 2025 earnings on May 1, with analysts expecting an EPS of $0.35, up from $0.34 in the previous year. Quarterly revenue is also expected to increase to $339.40 million from $329.51 million a year earlier.
The 52-week range of Apple Hospitality REIT stock price has been between $13.11 and $16.83. This range provides investors with an idea of the stock’s volatility and potential for growth. Additionally, the company paid $0.96 per share in dividends over the last 12 months, resulting in a dividend yield of 7.06%.
In its Q4 2024 earnings report, Apple Hospitality REIT posted FFO of $0.32, beating the consensus estimate of $0.31. Revenues for the quarter were $333.04 million, surpassing the consensus of $329.88 million. CEO Justin Knight attributed the company’s success to the steady improvement in business transient demand, ongoing strength in leisure travel, and muted supply growth.
To earn $100 per month in dividends from Apple Hospitality REIT, investors would need to have an investment value of approximately $16,997, which equates to around 1,250 shares at $13.60 each. This calculation is based on the desired annual income of $1,200 and the dividend yield of 7.06%. By dividing the annual income by the dividend yield, investors can determine the investment value needed to generate their desired income.
It’s important to note that the dividend yield can fluctuate over time due to changes in stock prices and dividend payments. For example, if a stock that pays a $2 annual dividend is priced at $50, the dividend yield would be 4%. If the stock price rises to $60, the dividend yield would decrease to 3.33%, and if the price drops to $40, the yield would increase to 5%.
In conclusion, investing in Apple Hospitality REIT stock can provide investors with a reliable source of passive income through dividends. By understanding the dividend yield calculations and monitoring changes in stock prices, investors can make informed decisions to maximize their earnings. Consider adding Apple Hospitality REIT stock to your investment portfolio to potentially earn $100 in passive income.
