How to Make $1,000 Per Month in Dividends!
Vložit
- čas přidán 15. 08. 2022
- How much do you need to invest to make $1,000 per month in dividends?
Robinhood Free Stock w/ Sign up: bit.ly/hf_robinhood
(click "show more" to see ad disclosure)
You'll need quite a bit of cash invested to make $1,000 per month in dividends, but I'll show you how to do the math yourself. This way you'll know roughly how much cash you'll need invested today to make $1,000 every month in dividends. This is for illustration purposes only and I wouldn't put all my eggs in one basket, but you can run these numbers with any stock that pays out dividends to get an estimate of your long-term goals. Hopefully your investments continually grow in value, as well as their dividends.
---------------
Robinhood Free Stock (Up to $200) with Sign Up:
► bit.ly/hf_robinhood
Webull Up to 12 Free Fracional Shares (Each $3-$3,000):
► bit.ly/hf_webull
M1 Finance (perfect for IRA's):
► bit.ly/hf_M1_Finance
Instagram:
► / honestfinance
Advertiser Disclosure: Honest Finance participates in affiliate sales networks and may receive compensation by clicking through the links (at no cost to you). This compensation may impact how and where links appear in this description. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. This channel does not include all financial companies or all available financial offers.
---------------
Honest Finance covers a broad range of financial topics that'll give your life and finances more value. Subscribe today for future content and be sure to give this video a like!
Disclaimer: I am not a financial advisor. These videos are for education/entertainment purposes only. Investing of any kind involves risk, so please conduct your own research.
#honestfinance #dividends #shorts
I have been a dividend focused investor for a long time. This does not mean I don't own growth stocks, I do. A well rounded portfolio should be a mixture of both categories. One way to minimize the anxiety out of stock market investing, is to make sure you keep a large cash cushion. I invest in the market, but never put all my money in market.
Dividends are dope. Personally, I sometimes use my dividends to buy other dividend and growth stocks for diversification instead of reinvesting in the same stock. To each their own methods though. The good thing is that you’re investing in the first place and that’s what’s important.
In my opinion, it was much easier investing back in the 60s but it’s a lot trickier now, those making consistent profit in these times are professionals reason I’ve been using an advisor for the past 5 years to consistently build my portfolio in preparations for retirement.
this is incredible! how can I vet your advisor, mind sharing info, if you please?
Finding financial advisors like Sharon Lee Peoples who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
I’m just learning this now. Starting small but I will get there
Be careful I once invested in a company that was paying 12% then their stock fell down 30 % it gave me a life lesson dont run after yields.😂
I understand the pain, but any stock can fall 30%. Netflix fell by more than that a year or two ago. All I'm saying is that it isn't limited to high dividend yields. While your value fell by 30%, dividend investing isn't about the value of your portfolio, it's about the monthly or quarterly income.
This stock he’s looking at is now worth $5 🤦♂️
Running after dividend growth rate is way better.
It took some years of learning before getting to this, and grateful I did.
What stick paid the dividends in the video?
Dividend investors don’t care about growth. Is all about the dividends every month no matter what the stock does
The thing to me is, if you invest and have other income outside of dividends then you will be able to live off dividends without selling. Which means you can pass that on to your kids which will give them a leg up in life. $52k dividends received in 2022.
I agree! That's why it is advisable that you have to invest while you still have a regular job or earning a regular income, and do it constantly. You still need to have something that will keep you going even if you're investing. Good financial planning and money allocation is the key.
I had my share of ups and downs when I first started looking for a consistent passive income so I hired an expert advisor for aid, and following her advice, I poured some money in value stocks and digital asset, i accrued over $80K in dividends last year
I’ve been down a ton, I’m only holding on so I can recoup, I really need help, who is this investment-adviser that guides you?
I have “Sharon Lee Peoples” as my investment manager. She has a solid reputation when it comes to diversifying portfolios and making. Them less vulnerable to market downturns. She may be a name you are already familiar with from Newsweek.
She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.
Hope this helps with some basic math. Enjoy :)
Watch more dividend videos: Dividend Investing
czcams.com/play/PLOmIpJDqCR-I0Iy8QzGmwobNomYdey1Xe.html
Only about $7k with tacby
A more realistic calculation is to use 3% dividend yield in a well diversified dividend portfolio. If you want to be even more conservative, use a 2.5% dividend yield.
2.5 is pretty low id say 4%
@@Fp30501 2.5% to be conservative. From my research, it’s difficult to find a lot of established companies that have paid at least 4% dividends diffidence consistently. Yes some do exists, but the point is to diversify and have many companies in a dividend stock portfolio.
Right I was thinking that. If you had at least 10 stocks that you can see growth, it'll cost less with the same if not more of a ROI.
Or not
So basically I would need 4 X the money … I would need 500,000 to make 1,000??? How tf is this dumb ass shit investing. I need a real way I can work my 10k 😢 any tips?
Good way to show the math but you need a lot more with safer investments!
And if I had done that I would have lost 17.9% of my principal.........no thank you! Stock is down almost 60% since inception......yikes.
Need money to make money
Ok. And?
?@@absolutelyfookinnobody2843
@@absolutelyfookinnobody2843 no and
Acquiring a stock is easy, but buying the right stock without a time-tested strategy is incredibly hard. Hence what are the best stocks to buy now or put on a watchlist? I’ve been trying to grow my portfolio of $160K for some time now, but my major challenge is not knowing the best entry and exit strategies. I would greatly appreciate any suggestions.
@ConnieKelly54 I have been considering going the same route, could you share more info please on the advisor that guides you.
@ConnieKelly54 Thank you for the lead. I searched for her, and I sent her an email. I hope she gets back to me soon.
Find a good dividend ETF that has a nice track record. Then you won't have to think about which stocks to invest in. FDVV Has stock price growth of 47% in the past five years, a 3.77 dividend yield, and an expense of only .15. This stock he is recommending is down over 50% in the last 5 years.....yikes!
Throw it all on a high volume,high market cap stock while the entire market is in a bullish uptrend. Then sell after a $1 price increase. (And im actually being serious)
checkout SPYI, its a pretty good Dividend ETF
if you're new paper trade if you're going to trade commons and learn supply and demand and how to understand the market on the stocks you're trading
entering something blind is a good way to lose money
Well now I know what to do if I win the lottery 😅
Don't buy this buy Dividend aristocrat 😂
scam@@peterking167
The serious answer to what to invest in if you win the lottery are Bonds that pay just above inflation. Safest possible place to put money, and your bankroll is so large that even a tiny amount of interest is financial independence.
Once you have enough bonds to cover basic living outside of poverty, then you push the rest into dividends and growth and dumb lottery winner stuff.
@@IllegiblescreamI would just hit 60% into the s&p500 and 30 percent into bonds, and the 10% for you to enjoy
if you buy 67k of "O" reality group you will make $14000 a year. thats pretty good if you can put aside 67k in your 30s. come back 20 years later and youll have at least $600k.
Oh yeah, that’s smart
I do not know what formula you used but your math is extremely incorrect. O is currently at a 5.67% dividend. If it stays that way the entire year 67k would generate $3,798 a year. To reach $14k profit you need a ~20% dividend and anything with a dividend that high is going bankrupt.
I have that stock, been in the red for years
@@terrinyc29you must have bought at a HIGH time. I’m down close to 400 dollars, but make close to 50 a month on it with an average cost of 55.03. I’ll start to worry if it goes below 45
@@terrinyc29thats what I was wondering. The higher the yield wouldn't it signify a red flag? Is it really beneficial to receive a great dividend but have a failing stock? Wouldn't you be ultimately losing money which would lower the amount you would then be getting for your dividends.
Thank you for this short!
You’re welcome
Thank you very much for this informative, short, simple calculation of monthly div. More success to you.
QYLD has been great for me. It went down from my purchase price but I'm making about 12%div
Thanks on the calculations
You bet
Love the honesty
it's down to 6.36 today - so i only need 106000, The problem with dividend stocks lately is that they are losing capital at the expense of dividends.. I have 3 stocks that are staying level and 2 stocks that are eating me alive.. I hate to put all my eggs in one dividend basket..
What stocks eating you alive rn
Make a lot of sense 😊 plain and simple thank you ❤
Don’t buy a stock with 8% dividend lol
Really? There are some decent stocks with that high of a yield. There won't be much growth, but that's not the point of dividend investing. Altria for instance, ticker MO, has been steady in the $40-$50 range for a while and yield is between 6-8% depending on price. Plus, they have been growing their dividends at least for the past couple years.
Ares Capital ( ticker ARCC ) is another stock that has been stable around $17-$20 per share and yield has been around 8-10%.
There are definitely some that don't do well and their dividends fluctuate a great deal ( ORCC is one ).
Correct, why would you when you can get a 25% dividend from say A ETF LIKE YMAX ..
By the way, just because I have an ISA stocks and shares account, I also invest UK dividend stocks monthly in UK even the yearly contribution cannot over than £20,000. But thanks for sharing
Great video
Thank you
Thank you🙏🏻
You’re welcome 😊
Good Detailed video buddy! glad I seen this just found your channel, keep up the good work..
$135,000 is a very achievable goal. And if you continue to reinvest that $1,000 every month. You could be a millionaire in less than 6 years.
Now do that with a good company like JNJ. It's $406k 😂
agreed @@o.c.g.m9426
How less than 6 years? Even if you compound it would take about 15 years.
Damn how much are you putting away yearly in your investment account 20k?
@@Leon_Miller yeah pretty much. It’s between 15k and 20k.
Or put 50000 on s and p 500 and make the same monthly. Take the rest of your cash and go buy a house in Hawaii and have fun😅
Ima try that
Please don't help to hurt the Hawaiian peoples any more than they already are currently. Many of the natives don't have a place to live in their own state because people keep buying it all up, and they're being forced off of their own land. There are so many other wonderful places to buy property in.
Whoever is thinking about doing this… DO NOT. Use a savings account and you will get a better return with absolutely no risk. Only fools chase dividend yields
Only fools use a savings account with barely any yields
At least he’s honest about the calculation
Who about to do all of that when dividends are paying $2.00 or more 😂😂
Or you can just simply do math like this
12 000/ 8.83% = 135 900$
Much more easier...
How’s it work if it’s not a monthly one?
12000/.0883 = $135,900.34
Bro, just get a ETF or real estate stocks. They are at Lowe's.
How you come up with that amount of money if you didn’t count the share price.
135k to make 1k/month, so only be 13.5k to earn 100/month from that point reinvesting that 100 each month ontop of what you where investing already leade to a very quick gain to that 135k
Yeah, but I wouldn't use Prospect Capital ( PSEC ). Ares Capital ( ARCC ) isn't monthly, but price and dividends are more stable. They pay quarterly.
Great! Now all i need is 136 thousand dollars! 😂
Only about $7k with tacby
last time they paid was in october.
Forgetting about the compounded dividends each month, + eps, + dividend reinvesting, + that monthly salary added to the equation....
What if the stock pay once a quarter dividend?
what kind of risk that dividends have?
What if that company tanks? Where will that 135k would go?
Why you spread it out over well known company’s who have a long histhistory of good dividends
So hypothetically if I had monthly paying dividend such as O (Realty Income). I wanted to make £100 off that investment monthly. Realty Income currently has a dividend yield of 5.73% of this comment being published. Using this method you explained, I would do 100 × 12 = 1200. Then 1200 ÷ 0.0573 = £20,942 to make that a monthly dividend.
Is this correct?
Remember the difference in American dollars to GBP though
Yall if it has an 8% dividend.. run. As fast as you can. In the other direction. Dont touch anything with an 8% yield with a 10 foot pole. Please i beg of yal
if you want to live off dividends, buy growth stocks and funds and let it grow then dump it all into dividend stocks when you're ready to retire
What about the ones that say 30 day yield? For example if the 30 day yield is 1.6 does that mean it pays 1.6% of the value of the stock I own per month?
How do I find out which stocks pay monthly dividend vs quarterly ?
Dividend investors never tell you that when the stock does poorly, the company also reduces the dividend yield. This then causes the Dividend investors to sell, making the stock do even worse. It doesnt make any mathematical sense to lose 30% in value for a 3% dividend, especially when inflation is more than 3%. Robinhood and webull also pay 5% on uninvested cash, soooo...
Will done
Be careful, high yield probably means issues in the company, think twice.
Also, calculate the tax..
Good luck
I'm Newbie in this but This is good compared to coca cola dividends.
Because of The dividend yield. Higher dividend yield doesn’t mean better. Coca Cola is more sustainable and if shit hits the fan your money won’t go poof while with the other company there is a chance that they need to cut the dividend because the company is not sustainable.
How do I get qualified dividends only?
Banks are giving guaranteed 5%
but its not invested
@@teddyruxpin7876 and it's giving you 5% interest with no risk
Not were I am from is less than 1%
How many shares to buy?
And how do we know that if they are paying monthly or quarterly??
Check dividend history on any stock website
Qyld pays 12 percent a year 1 percent monthly.
It’s a good way to do it if you have that kind of money
The problem is that so many of these high-yielding dividend stocks are extremely risky and you could either lose the dividend, have your invested $$$ burn away, or both.
Buy solid dividend-growing stocks like UNH and V and HSY and MCD instead.
if I have that kind of money then I will buy atleast 2 3 bedroom houses on loan and rent will be more than 1000 usd a month after monthly loan payments!!
136k..... nope. Don't hv it. Not even close. BUT....8.83% is a very good div. yield. There are some that pay TWICE THAT, meaning you cd get that 1k/month using HALF that 136k...or 67k. More doable.
Anything paying more than 4% isn't a good thing for share price. Stocks that are higher dividends means they have less reinvested into growth which ends up being more returned in stock prices
@@llk.6797 exactly
16% is not sustainable for most companies
Yeah… put all your eggs in the same basket! What could ever possibly go wrong?! …GE retirees everywhere love this plan!
Not many stocks give 8% dividend.
Math is a bit off for a monthly payout, but I get the idea. This math only works for a company that pays out 8.83 yearly, but it's close enough. You make more money off of the 8.83 split up monthly than once a year.
Let me add something, and everyone feel free to reply. If you need to invest 135,900 to attract a dividend payout of 1000 per month or 12000 per year. Doesn't that mean it will take 11 years just to break even?
I wouldn’t say breaking even depending on the value of your stocks so let’s just say your stocks stay the same price and the dividend pay then after 11 years when you make enough money to cover what you put in you would have the value of your stocks plus the original money so you would have doubled
@@devinw832 well said
I figured if you invest 100,000 into a company, that will payout 10,000 a month. Then within a year, you will break even, and profit an extra 20,000. Because that's 120,000 a year.
Generally large companies w good track records will increase their dividends (typically every year) and the share price will go up as well. This isn’t a guarantee though.
@@peace2all613 where did you get $10k a month from 💀
Hi 👋 I Looked Up Prospect Capital & There Dividend Yield Is Much MUCH Lower Than What You're Saying 🤔👩💻🧐 Why Is That?❓❓❓
The yield fluctuates, so it could’ve changed over the last couple months
good news is you'll be living well below the poverty line.
So in theory, if you were to invest 10-20million, would that result in 100k-200k a month in dividends?
yes of course
Do you go on a financial app like stash or acorn to find these stocks
Robinhood app
So a lot of videos say to invest money every month like lets say they say to put 150$ a month do i put it in the same stock or does it go to different stocks im confused also technically you're losing money till you make money ?
There’s always risk, but sp 500 index is a good option.
@@HonestFinanceI got a question, currently the sp 500 is up, should I just start investing right now, or should I wait until they take a dip to start investing
I don’t understand if the company pays dividend monthly and yield is 8.83% means you get 8.83% a month or still in a year?
Should only take about 15 years with my current plan. Might have to find a different plan.
Say you bought like $2000 with of a stock like that 3 days before dividends are paid out, then sold all the stocks after receiving dividends. Could you do that?
I think you must own stocks for at least a month prior to the dividend payout to receive your dividends
What is the difference between a Hight Yield Savings Account that pays 5 % compounding interest vs. a 3 % stock dividend?
A savings account is guaranteed and insured. You can not loose your money. Stocks go up and down, so if you're getting 3% on 100k today you could be getting 3% on 70k next month... Or if the stock goes up you could be getting 3% on 200k.
Dividend investing just do not do it until you have made your first million. It really is not for those with less capital.
What is the math for a stock that gives every quarter and has 12% for 1k per month. Thanks
sounds like QYLD. which would be around 90k invested for that monthly return.
I like this stock Agnc the dividend 14.15%
Why is it so high
@@mikelopez4148 bro I don't know, but check it up. Anyway I'm buying it they pay two times pe month
Sell....covered...calls....dividends are peanuts.
stock is now trading at $6/share, 25% decline for a taxed dividend
Anyone know any good investing app?
Incorrect $100,000 in QYLD
Max thumbs up!
I’d DCA, but if it’s going to be one stock, it better be a diversified ETF. Otherwise you’re relying on a success of one single company.
no worries just have a few millions invested you will get a lot more, divided by 12, wow think of the dividends you earn per month.
can you buy stocks a couple of days before dividend yield day and then sell after they pay you? all articles say you can but there has to be a catch
No, you have to buy before the ex-dividend date.
No.
or u put that 135k into the s&p 500 and (according to the last year) get 32k instead of whack 12k
so, you will have a gain in 11 years?
Dividends are taxed even if they're reinvested. You need to add that to the equation to find your NET.
Correct
@@HonestFinance are PSEC dividends qualified and taxed at max rate of 20% .
Thanks in advance.
Great question. I believe they are qualified according their info
@@sevensages5279 PSEC is a BDC which means its dividends are taxed as ordinary income, not qualified. It's also a dividend trap because it has been cutting its dividend and its share price is down from 10 years ago.
@@vincent8900 TY. I'll stick to the Aristocrats. 🎩
Think about a multi millionaire who can put idk maybe 2 million in that stock and just live comfortably off dividends. Life is crazy
That's a risky investment 😉
How?
@@friedhotwings that much in one stock
@@Mister_Hassan oh lol
@@Mister_Hassan just go into diversify into different dividend stocks around the same yield
It’s already diversified. It’s an ETF.
Just going out on a limb here….but why not just write covered calls and collect premiums? You can make way more
I just enter the amount in the calculator and bam now it looks like i have money🤷🏽♀️
So let’s say I have the money to buy that particular share making me 1000 dollar every month do I pay the amount once and I will have the money every month and also how do I withdraw the 1000 does it directly come to my account?
The stock could fall or split, so it's not guaranteed you'd get that amount every month forever. My very small dividends come straight to my brokerage account, and I can reinvest it or withdraw it.
How about taxes?
Do a DRIP for the first year because taxes are too high. Cancel the drip after the first year and then you’re at long-term qualified distributions.
Last step is to add taxes into the calculation and go cry in the corner😂
or you can just divide $1000 on how much div you getting then multiply it the stock price
Don't forget the tax... 😔
Sort of makes me think some of those rich lotto winners should have put some of their winnings into some of this just in case they blow it in a few months 😂
how about taxes? lol
Thank you for this information but I have to say there's got to be a better way there's got to be an easier and more sustainable way I'm feeling so hopeless looking at these numbers I can't lie 😂 I've been searching for months on how to start doing this stuff and I just always come to a standstill
Okay I just started messing with dividends, but I thought the amount you're paid depends on how many shares you have?
It is.
@@Aaron-bb9rt so why does this sound like something different?
That’s correct. If one share pays out $0.25, then owning 100 would be $25.00
@@peace2all613 how is this any different lol.
youre calculating how much you would wanna make from dividends a month, in that sense the calculation that it gives you is how much money worth of shares you should have in the market to receive those dividends.
HOW TO MAKE WEALTH.
The first step to attaining wealth is figuring out your goaIs and plans - either on your own or with the heIp of a financiaI pIanner, and foIIowing through with an inteIIigent pIan, you wiII gain financial growth over the years and enjoy the benefits of managing your finance.
I am fortunate I made productive decisions that changed my finances (gathered over 1M in 2years) through my financiaI planner. Got my 2nd house in Feb, and hoping to retire nxt yr.
Whosoever tries this sureIy acquires wealth. Get to her.
Elizabeth Green Hunts
Good I got here. Big Thanks.
Great info….
Yeah but where are we getting 136k to invest?
Blackstone