Want $500 in monthly passive income? Buy 938 shares of this ASX 200 stock

For $6,000 a year in passive income, I think this ASX dividend stock is one to buy.

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What would you do with $500 a month in passive income?

$500 a month, or $6,000 a year may not be life-changing. But if you're like me, I imagine it certainly would come in handy.

Depending on your situation, you might choose to spend that additional money as it comes in. Or if you don't need it immediately, you could reinvest that passive income and let the magic of compounding grow it over time.

With that said, we turn to S&P/ASX 200 Index (ASX: XJO) dividend stock Macquarie Group Ltd (ASX: MQG).

Tapping Macquarie shares for a $500 monthly passive income

Before digging into the numbers be aware that Macquarie, like most ASX dividend stocks, makes two annual payments. Depending on how many shares you own, that may average out to $500 a month, but it will come in two tranches.

Also keep in mind that future passive income may be higher or lower than past payouts depending on a range of company-specific and macroeconomic factors.

Now, with Macquarie, there's a bit less uncertainty at this time. That's because the ASX 200 financial stock only just reported its full-year results this past Friday, which saw management declare a final dividend of $3.85 per share, 40% franked.

With the stock trading ex-dividend on Monday 13 May, you'll need to own shares at market close this upcoming Friday 10 May, to receive that final dividend.

You can then expect that passive income to land in your bank account on 2 July. Unless, as mentioned up top, you opt to reinvest that in the company's Dividend Reinvestment Plan (DRP) in expectation of future growth.

Now, atop the upcoming final dividend payout, Macquarie shares also delivered an interim dividend of $2.55 per share, also franked at 40%. Eligible shareholders will have received that payout on 19 December.

All told, Macquarie has (or will have) paid out $6.40 a share in partly franked dividends over the year. That works out to a payout ratio of 70% and a yield of 3.5% at the recent Macquarie share price of $183.83.

Meaning to bank $500 a month, or $6,000 a year, in passive income you'd want to buy 938 shares of this ASX 200 stock.

Now, as always, whether you're thinking about investing in Macquarie shares or any other ASX passive income stock, be sure to do your own research first. Or simply reach out for expert advice.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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