Calculating Dividend Income from Investing $70,000 in the “Magnificent Seven” Stocks

Calculating Dividend Income from Investing ,000 in the “Magnificent Seven” Stocks

You don’t buy growth stocks primarily to earn income. Many of these stocks pay no dividends. However, that doesn’t mean you can’t earn dividends from growth stocks.

The most important growth stocks on the planet today are the so-called “Magnificent Seven” shares. Can you count on you and the influx of dividends with these stocks? Yes, at least with some of them. Here’s how much dividends you would earn by investing $70,000 in Magnificent Seven stock.

Dividend sharing

There is a clear “dividend split” between Magnificent Seven stocks. Although they all make enough money to pay dividends, only four actually do so.

Microsoft (NASDAQ:MSFT) launched its dividend program in 2003. Since then, the tech giant has increased its dividend every year.

Apple (NASDAQ:AAPL) technically started paying quarterly dividends several decades ago. However, the company ended its dividend program in 1995 and only resumed paying dividends in 2012. Like Microsoft, Apple has consistently increased its dividend payouts.

Nvidia (NASDAQ:NVDA) is perhaps the most surprising dividend stock of the Magnificent Seven. The major chipmaker first declared a quarterly dividend in 2012. Nvidia has increased its dividend steadily for several years, but has maintained a stable payout since late 2019.

Metaplatforms (NASDAQ:META) is Magnificent Seven’s latest dividend payer. The social media company launched its dividend program earlier in 2024.

Amazon, AlphabetAnd You’re here do not currently offer dividends. This could change in the future for two of the three, however. Goldman Sachs analysts predict that Amazon and Alphabet could start paying dividends, perhaps as soon as this year.

Counting money

So how much dividend income could you earn by investing $70,000 in Magnificent Seven stocks? If you bought $10,000 of each stock, the total would be just under $170. The following table details the amount of dividends that each share would bring:

Action

Dividend yield

Annual dividend income

Microsoft

0.71%

$71.00

Apple

0.56%

$56.00

Metaplatforms

0.41%

$41.00

Nvidia

0.018%

$1.80

Amazon

N / A

$0.00

Alphabet

N / A

$0.00

You’re here

N / A

$0.00

Total

$169.80

Data source: Google Finance. Calculations by author. N/A = Not applicable.

Of course, if you were actually looking for dividend income, you probably wouldn’t buy shares of Amazon, Alphabet, and Tesla. Let’s run the numbers assuming you invested $70,000 split evenly among the four dividend payers of the Magnificent Seven ($17,500 in each stock). The following table shows how much you would earn:

Action

Dividend yield

Annual dividend income

Microsoft

0.71%

$124.25

Apple

0.56%

$98.00

Metaplatforms

0.41%

$71.75

Nvidia

0.018%

$3.15

Total

$297.15

Data source: Google Finance. Calculations by author. N/A = Not applicable.

Would most income investors be satisfied with an annual dividend income of less than $300 on an initial investment of $70,000? Probably not.

Limited magnificence

The magnificence of the Magnificent Seven stocks is limited. None of them offer attractive dividends. The group’s top dividend payer, Microsoft, still posts a dividend yield just over half that of S&P500.

Dividends are an afterthought if you invest in the Magnificent Seven. Buy these stocks for their growth prospects. Many other stocks are more magnificent if you want solid dividend income.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, former director of market development and spokesperson for Facebook and sister of Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Keith Speights holds positions at Alphabet, Amazon, Apple, Meta Platforms and Microsoft. The Motley Fool holds positions and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia and Tesla. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

Here’s how much dividend you’d earn by investing $70,000 in ‘Magnificent Seven’ stocks was originally published by The Motley Fool

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