Earn $100 in Passive Income by Investing In This One Stock
Written by
Jacob Wade
Edited by
Levi Leidy
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A Big Mac with fries is one of the most American meals you can get. But what if I told you that your favorite lunch spot could actually earn you $100 per month in passive income?
Investing in McDonald’s stock could start to earn you some sweet passive income — enough to fund your lunch habit indefinitely. We’ll break down how you can earn passive income from McDonald’s stock (MCD), how much you’d need to earn to make $100 a month and how to get started investing in MCD stock today.
How To Make Passive Income With McDonald’s Stock (MCD)
McDonald’s has been a publicly traded company for 60 years, with its IPO launching in April 1965. McDonald’s has offered steady growth for investors, with many stock splits over the years.
In 1976, McDonald’s started offering a dividend to investors. This means every quarter, MCD shareholders would receive a payment from McDonald’s as a share in the company’s profit. That dividend is still in place, and current shareholders still receive quarterly payment from the company.
Today, MCD offers a dividend yield of around 2.40% per year. This means if you invest $100 in MCD stock, you’d receive around $2.40 in dividend payments over the next 12 months.
How Much McDonald’s Stock You Need To Earn $100 per Month
While McDonald’s dividend yield isn’t life-changing money, it is true passive income. The only action you need to take is to invest in the stock, and start collecting quarterly payments without lifting a finger.
If you want to ramp up your McDonald’s passive income earnings to $100 per month, you’d need to own enough McDonald’s stock to make around $1,200 per year.
At a dividend yield of 2.40%, you’d need to own about $50,000 worth of MCD stock to make $1,200 per year (or $100 per month) in dividends.
With MCD share prices around $296 per share, you’d have to purchase 169 or so shares of McDonald’s stock to earn $100 in passive income through dividends.
While this may be a steep price, the dividends are truly passive, and you might also enjoy earnings through price appreciation of the stock as well.
How To Invest In McDonald’s Stock
If you want to become a McDonald’s passive income investor, you’ll first need to open a brokerage account or retirement account that has access to individual stock investing. You can open accounts through popular brokers like Schwab, Fidelity or Vanguard.
You’ll need to fund your account by transferring money over from your bank account. Once the funds have been transferred, you can place a trade by searching for McDonald’s stock (ticker symbol MCD), and choose how many shares to purchase.
If you’re just getting started, you can purchase a single share at around $296. But if you don’t have enough, most platforms allow you to purchase fractional shares of stocks, so you might be able to buy MCD stock with just $10-$20.
Once you place the trade, you can sit back and collect your share of the dividends without doing anything else.
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