How To Make $1,000 Per Month in Dividends (SIMPLE!)
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- Опубліковано 22 сер 2024
- Simple math to be able to calculate how to make $1,000 per month in dividends. Passive income through dividend investing can lead to financial freedom so fast! AT&T NYSE:T
#dividendinvesting #bestdividendstocks #howtoinvestinstocks
*not financial advice
If I had $360k I would invest $100k in tech & $260k into dividend stock with a proven track record to grow with capital appreciation & dividend increase year over year
Adding JEPI and JEPQ are smart additions in my opinion. As for staying committed to higher-risk investments, it's all about balancing your risk tolerance with your long-term goals.
The market is not necessarily a rollercoaster if you know your way around the market, there are various opportunities in the present market to accrue good profit, If you are not too savvy with the market, just buy and hold on strong companies with good earnings, or consult with advisors on ETFs and actively managed funds. that’s what works for my spouse and I. We've made over 30% capital growth minus dividends.
Your advisor must be really good. How I can get in touch? My retirement portfolio's decline is a concern, and I could use some guidance.
Credits goes to "Sonya Lee Mitchell" one of the finest portfolio managers in the field. She's widely recognized; you should take a look at her work.
@@cowell621She actually made me lose 60% of my portfolio and I fired her and she seemed like she wasn’t all there mentally
1st step find $170k
yessssss. 😂
U Dont need start with 170k u could work your way up to that just obviously gonna take more time
@@TyroneBeSpazzin When you do the counts of how much money you have paid for insurance, hamburgers, sodas, apps that you did not use more than 1 week, videogames for 20 years, believe me, it exceeds 200k. the trick is to trust the Snowball. start small and grow over the years. You can get a hustling job too, ppl like being lazy, work just 40 hrs a week and money won’t knock at your door
@@andrww777 ya I feel you I just started investing into stocks like 2 weeks ago am starting small because am using the money I make from work to invest am doing around 200-250 bi weekly into my account because that’s what I could afford rn I got like 4 stocks n am planning to get more rn I got ford , doordash , Amazon , and Microsoft
@Name thanks bro how many shares did u buy of each ? I just invested in etfs and am lookin to invest more so I can get a monthly income
An even simpler way is to divide how much you need by the dividend yield.
12,000/0.071=169,014.
Came to say just that.
My first thought
So I need $169,000 to just make 1,000 a month
And your 169000 bye bye later😢
I was gonna say why complicate the math like this?
The realistic version of this video would be investing in an etf or index fund that focusing on companies generating positive cash flow and aren’t in loads of debt like $T. Investing all your money in one stock is a really dangerous idea
Definitely agree. Just picked a company to do an example with!
What about Verizon?
They did shed off that cable business didn't they?
That is where you are wrong. AT&T is a monster Along with Verizon and the debt they have is peanuts compared to the profits they generate
@@gengarphantom6967 they've been having that debt for years right? I'm gonna do some research on their dividends. See how they're affected by their debt.
No way in hell AT&T is getting $170K from me. 😂
You don't just invest in one stock. You diversify into many stocks. Either high yield index funds or ETFs
😂😂😂😂😂
😭😂🤣💀🪖
I figure if they take my money every month, they can give me back some of theirs
AT&T are crooks
To prevent discouragement from future investors, let’s lower that $12,000 a year to just $100 a year. That is more doable to the beginning investor and to someone who does not have much money to invest in the first place. That’s how I started and it is working out very well.
Nice!
Exactly
Thank you... That "169,000" was a shocker to me...
It will come though!
I do like the idea of starting with a smaller goal at first.
Lol that weird because I’ve made over 300 dollars in a month and only invested 2,000 overall money getting fed up though lol I lost a lot of money today and the market started back up since it’s Monday I surely thought it would go up but I do went down lol
Can you explain a little more please? I’m very interested but pretty uninformed. I do best with simple straightforward info. ☺️thanks!
diversity over quantity. reinvest earnings into penny stocks, sell when they go high at the end of every quarter. take those earnings reinvest into blue sheet. you've got a moderate risk steady growth rate on cash flow.
Then once AT&T cuts their dividend again because they’re drowning in debt you’ll just need another $170k and likely experience the shares being devalued. Don’t yield chase people.
I bought x128 shares the week before they cut dividends. I have been holding the bag ever since.
With its current share price of $13.60, you would’ve lost $50,000 of your $169,000 investment
Dividends remain though.
Thats why you buy more, it's like a firesale.
@@TheAspiringLawgiverat&t is an ass investment. -30% 1 year dividend growth rate, also spending quite a bit of their free cash flow on paying dividends
I mean depends on how long you are willing to hold it, and also it depends on how much in the negative you where willing to go. These things should have been determined before buying
Yes, it is risky, I think that's why it is important to choose strong company with future prospects and small macro risks
Finally someone actually showing numbers not just saying get rich by getting 1000 a month in dividends
📈📈
AT&T is near a 5 year low.
This isn’t the worst time to invest
I'm amazed about how you made the calculations sooo much more complicated than what they actually are.
Teaching people how to do all the calculations so they can do the part they’d want for other stocks
So a suggestion to make the math less lengthy. So how about annual desired income $12,000 divided by the dividend yield will give us the investment amount needed to accomplish this?
Then to know the number of shares to buy, just multiply the result by the price per share.
Or for 170k buy a flat in Greece and rent it for 1000 euro a month and you are good to go. Easier and safer .
Step 0 get a job.
Step 0.1 save like crazy.
Step 0.2 invest heavily.
Repeat until your investment gets to $169k with a yeald of 7.1%
Step 0.3 pray for your stock not to.crash, dividend is not cut down, stock is not diluted, company remains relevant, and you never sell.
Someone who is finally spelling it out for all the math-challenged people. These people running around talking about retiring early on dividends, are forgetting to tell you , that is possible AFTER you accumulate a couple Million
You'll make $1000 a month off AT&T Dividends but your investment will drop $20,000 a year! 🤣
reinvent the Dividends? okay now you're only losing $8,000 a year
That's their game.. Lure in the plebs, pay dividends- but always drain off funds at the share price level, then split the stock, giving the impression of owning double the shares, but double of lesser value is still less.
Then they artificially jack up the share price for a few hours while they sell off their own shares (insider trading), crashing the value for anyone caught "holding the bag".
And the FTC and other regulations are never enforced, because they don't want to lose their cushy jobs.
Watch for the next time a guy like Musk buys into something like crypto.. It's an old con that continues to work for the already rich.
You would be better off selling cash secured puts or covered calls, especially in a bear market.
@@l0raxbread438 you'd be better off trading simple fx over options
Bad take
That's dope. Who doesn't want to lose 8 dollars extra a year. What. A deal!!
If you use the yield %, the price and number of shares are irrelevant. 7% return on 10000 is always 700 regardless of what stock you buy as long as it returns 7%
7% is based on stock's price, if stock price drops from 10000 to 5000 and if your yield stays %7 you will be actually getting 3.5%
I have a different edge. I pulled down 4k in options premiums and 3k in dividends in June. First month popping 7k. Im reinvesting it all back into my portfilo. Every month the imcome grows by a little bit. Once im pulling down 30k a month, im pulling the plug on my w2 income. Im mid 50s.
thank you. this is by far the simplest explanation, thank you 🙏
Very cool way to plan your goals, I like to divide by the dividend yield which is something like (12,000 / 0.071) to get your goal of 169.014k
Yes! I wanted to show people how to do the math for the number of shares too but yes your way is even simpler!
@@NolanGouveia You would be better off selling cash secured puts or covered calls for income. Would require much less capital and would yield higher returns.
At&t also pays a qtrly div per share. If you allow it to compound, it will be more be the time you take your annual pymnt
How much do they pay
You, my friend, just got a new subscriber
Awesome! Welcome
Please make a short on VOO ticker
Just have $170,000 laying around that you're happy to dump into a single stock....SIMPLE!
That is one way!
@@NolanGouveia I think that’s sarcasm. Is there another way? Because most people don’t have that much.
@@14READERPOWERS14 you don’t have to invest that much all at once. Most people buy one or two shares of certain stocks monthly and it builds quick!
@@14READERPOWERS14 a second job that pays 1000 a month? 😅
@@14READERPOWERS14 Cabrina! Your powers astonish me! You detected my sarcasm perfectly...
share price*(dividend yield*.01)=A value, (desired monthly income*12)/A value=# of shares to buy, # of shares to buy*share price=Amount of money you need to invest. Can someone check, correct and simplify this dividend income formula please. I wish to do this with SPY or SCHD one day.
Just to point out that not all equities pays dividends in a monthly basis, usually dividends are payout quarterly.
In any case it’s valuable information
Ok, now do that taking into account taxes, accountant fees, and inflation.
I make $1650 a month from 9300 shares of AGNC and 5500 shares of ACP.
Sweet!
@republicshallriseagain419 Cost me around 115K. I bought the AGNC at average price around $8.60 for 79K and ACP at an average price around $6.40 for 35K. Both were near there 52 week lows when I bought.. .....as of today I'm up 19K on AGNC and 2K on ACP.
just started but those 2 stocks I have in my portfolio already,do you pay taxes on that money
@leeprice1064 Heck yeah!......you better give Uncle Sam his. UT or you'll be in alot of trouble.
Almost 15 years before the amount you received monthly equals the amount you invested. Doesn't the average annual eight percent return on an index fund yield $13,520 on $169,000, beating out the $12,000 on a single dividend stock like ATT's. Total interest on the index fund alone would total $367,000 in 15 years, $37,000 more than the dividend stock, which is arguably not a bad thing, but it's putting a lot of risk on a single stock to provide monthly income.
Good points, just different ways to get to similar goals. If you’d rather have cash flow without having to sell the asset, the dividends may be your better vehicle. And I agree with the risk comment and would rather hold any substantial amount of money in a dividend etf rather than a single dividend stock
Hello I'm new to investing and I'm curious two things Number one where is it that you find the 8% return? Because looking up the average yearly for ETFs It said something like 0.16% unless I'm looking in the wrong place. Also I'm curious as to the cash flow and how would you have cash flow if your money is invested in either one of these? You mentioned having cash flow without selling. So how does that work exactly if you don't mind explaining? I'm currently looking for a few funds to just start putting some money into and have been researching what the best ones are going to be for the upcoming year.
@@brian8431.16% is low, not even a divident ETF. Normal would be SCHD or DIVO, 3-5%.
Most of the return on an index is from divided payouts
Investing in close-end funds that pay monthly dividends is a great idea. The trick is to hold the funds long term and reinvest the dividends. Also as time goes by try buying more shares which means more dividends to invest.
I like ETFs better personally
It's a win if learn.
Agree
Stay away from this company
Just used the company and numbers for an example
@@NolanGouveia*Clueless YT gets flayed by actual financial people and backpedals*
what a shitty company to "use as an example". Shows you just care about views
Don't you have to pay taxes on that though?
@@thiccerbriccer2actual financial people? Oh man
The thing is why would u invest everything into at & t
Definitely shouldn’t buy this was just an example for the math
The only issue is net loss in 2022 of ($7.06B) which could be a sign that the dividend could be reduced or suspended. Its important to look at the historical financial health and YOY trends to see what direction the stock will likely go.
Here's an easier way:
It's irrelevant to know the number of stocks. You need to know how much money to invest. So...
Divide yearly dividend by yield to get the total amount you need to invest: $12,000/0.071 = ~$170k.
If you want to convert to #stocks then divide by share price: 170k/19.10 = ~8,849 stocks.
Great video you are on it 🎉will definitely be watching more and you have a new Sub here!
Thanks for watching and for the feedback!
High yield dividends are just not good nor stable go for lower between 1 and 3 is the sweet spot for dividends
I agree that the lower yielding ones will definitely sustain longer term
Awesome. 170K. Thank you Topher Grace. I love your movies.
😂
Investing makes studying rocket 🚀 science easy
Ahhh yes my 170k I left in my other pants
Take 2500 by a hot dog cart hit the parks and make over 20,000 a year.
I'd rather not spend my days selling hot dogs lol
@@masamangtao6417 I know a hot dog vendor and he makes bank...and he is his own boss
This is about passive income…
@@flathame1 Sure it's better than being an employee at a hot dog stand. But you're still standing there selling hot dogs all day. Not my dream life.
You really can’t read, can you?
I have 43 in ATT...just about 8800 to go. Almost there!
Niiiice
Only if they keep can afford paying the same dividend in many years to come, I have read many books about dividend investing, there are key things to be considered…
Great video! It's becoming more clear that you need to save and invest $100k in after tax investment and retirement accounts to get that return.
scalp / swing / or daytrade if you have $169k sitting
VZ better option IMO.
Do not invest in att… steady drop over the years, your dividend will not make up for the negatives you’ll be taking.
Have you explained the risks of that investment?
Ever since I realized you need over $100k to make the $1k a month in dividends I realized it’s not it’s all glamorous
Yup not glamorous but can be a nice little form of some passive income!
Might not be glamorous. But with inflation that $100,000 if just sitting in a bank account loses so much of its value over time. #1 reason why the richest people don’t truly own anything, everything they own are in assets and stocks
You don't need to put in 170k. Learn about compound interest.
And gets Taxed to the hilt because you need to declare it as income . Not worth it tbh.
you can get some safe bonds at almost 5 pcnt. that's super safe. for us treas bonds you get paid every 6 months. a little less than the att number, but really safe.
Or put that money into a down on a house (maybe 2 if you have that much laying around). Much better investment
Pro scalpers could easily win 5% monthly .
$3,831.42 a day, 5 days a week
He forgot to mention you will have to pay taxes end of the year on that😂
If that’s your total income, you have to pay 12% of that in taxes
Thanks for sharing... And well understood 🎉🎉🎉🎉❤❤❤
Great video professor
Thank you!
How much you’d of lost in T? 19 to 15?
As long as they continue to pay the same Dividend / share….who cares what the stock price does as you still get your $1k/month. BUT generally this doesn’t happen. Current 20 Sept 24 price is $15.50 and the yield is 7.35%
@@kckcmctcrcbro you still need to protect your underlying investment. Aim to minimize losses. Choose companies with strong Financials, etc. You still need to do your homework. It's not just pick one and ride the waves. I think a lot of ppl are hung up on the example. Unfortunately those are the ppl losing in the market. Educate yourselves. Good luck yall
@@kckcmctcrc This is the sentiment of a true dividend investor. And I agree. Sure, growth is important, but it's expensive to have both. Both AT&T and VZ are not doing so well, but they are giants in the industry, so it just depends on the investor. Both have issues. I believe VZ is a little better off than AT&T. Pros and cons on both. But dividend on both are attractive.
OR just look up the dividend history of whatever stock you're invested in. Then take the most recent dividend payment, for example .10, then divide what you want to make, in this example $1000. That'll give you the amount of shares you need. Then multiple that by the current price of the stock and that's how much you'll need.
That does work however you’d have to be careful because “the most recent dividend payment” is probably a quarterly payment so if you want $1,000 per month you’d actually need to divide $3,000 instead. It can just get a little tricky if you mix up the numbers
@@NolanGouveia good point. Thanks
It’s just an example of how to do the math… I just did it with my vanguard index fund and I’d need $490,000 invested for 1k monthly…
We need more stocks like those?
Like those what? Like T? You wouldn't want to own it. Their revenue is stagnant, their dividend is under threat of even further cuts, possibly outright eliminated just to keep the cash flow to operate. T needs to find a new business niche, because their current operations are not performing well for the overhead investment costs.
& take 14 years to make that 169k back from 12k/yr
Well no… cuz the smarter thing to do is invest the dividend back into the etf or wtv ur investing to keep growing the portfolio
You gotta reinvest the dividends & remember, the share price might go up aswell. It shouldn't take more than 12yrs. It is a long-term investment though so be ready!
Thank you for helping me understand the math. But to make $12,000 a year you have to give away over $100,000
I hoping to reach 300k in dividends this year, I’m very close , I enjoy your content
12000 divided by dividen= what ur need
12000/.071=169000
I wanted to show people how to find how many shares they’d need or how to figure that out as well 👊
Are dividends distributed monthly or quarterly?
Depends, can be both. For this exercise I just took the yearly dividend and divided it by 12 to show what the average would be each month
Subscribed!
Good to have you in the channel!
Thanks!
Thankyou!
It's all fun and games until they cut the dividend
Dont forget you need to factor in about 20% maybe 25% in yearly taxes so your 12000 yearly is really about 3000 which gives you about 9000 a year.
Qualified dividends will be more like 15% for most earners but could actually have a zero tax if you plan it right
true, i was just taking the worst case scenario and you would have NO tax if you did it inside a ROTH IRA...and that would be the best...that is for a retired person...unless you pick the correct 6 #s for the powerball.....but here is a question.. could you say, you took some money from your ROTH IRA and buy some powerball tickets and won would you still have to pay taxes on the winnings??? just a question,,,,lololol
When one can’t even admit how bs they are.
9000 after tax? LMAO
Not bad. The dividend yield fluctuates continuously 😊
ATT is a quarterly dividend payer and pays in Jan, April, July and October...but what you can do it take your dividend and buy A February, May, August, Nov and take those dividend and buy a stock that pays in March, June, Sept and Dec...then start all over with back into ATT...if you buy other 7% payers APR then you are effectively earning 28% APR
At that point.. you might aswell just work a full time job literally anywhere almost 💀
Or work a normal job to increase your dividend portfolio monthly whilst the returned dividends can be compounded/reinvested to increase its overall value and return each year.
An example of this is if I had $100,000 in dividend stocks and let’s just say they return roughly 8% each year. If I just leave the starting amount for 15 years without adding anymore to it, I’d end up with around $317,000. Then let’s say you chucked in $200 a month for that 15 years. You’d end up with $385,000.
Not to mention that if you left it just 10 more years (25 years total), you’d have $685,000 without the $200 being added monthly and $868,000 with it.
Damn a 200k investment for 1k back a month is actually pretty achievable
Exactly
Get a bank CD, it’s a guaranteed $1000 a month on $200k with no risk
At&t pays quarterly dividends which is 4 times a year
If i can afford to drop 170 grand on stocks, i dont need 1000 in dividends
This video was insane. 😊
📈🙌
But I don't have $169,000 😔
Same
You don't need to put in 170k. Learn about compound interest.
Step 1: be born in a rich family.
This video just gave us an example. I do the same math, only I am using like 70 stocks to mitigate risks.
Very good!
Don't put all your eggs in one basket
Agreed!
Unless it's something like VOO or VTI. Well, I guess that's not really one basket? 🤔
I will stick with crypto currency 😂
As long as the dividend doesn't decrease. Being that heavily invested in one stock, especially one with that high of a div yield is risky...
Might as well just finish med school and wait for that cash to pour in... that's quite a lot
Start any amount and reinvest dividends and add saved money to that each month untill you get to 1k/month
Why do you guys talking about dividend investing always only talk about quarterly payers and mediocre ones at that like AT&T. There are a high number monthly dividend payers that do much better and allow you to reinvest dividends monthly. This grows your portfolio much quicker and for less money.
Thanx 4 the heads up.
I would never put most of my money into the stock market too risky. I put most of mine into cd’s and high end apr savings.
So you’re buying power is being ate up by inflation since the interest rate is below 6-7%. Stock investing is for people who want to beat inflation and grow their wealth.
Whats better, do that or buy a property you can rent out? $169k you could probably get at least 2 properties if not more?
Cool so I can afford to buy enough stock to make around $5 a month in dividends. LOL
1k a month is terrible. Take the 169k,catch an up trend and put it all on 1 stock. The moment the stock moves up $0.12 you'll be up over 1k in a matter of seconds. Then sell immediately. Scalping. In and out real quick.
The most I've scalped with with 55k. I was up $700 in less than 30 seconds. I sold and went back to bed. Rince and repeat. I made your 12k in 3 months. That's 1k a week. I was making 4x the money you would be making with just 1/3 of the capital. Then I withdrew 40k and put it down on a brand new car 1 month ago.
And I'm still 20k in tesla right now. The stock moved up $10 and I was up over 2k in litterally 2 days.
Your method requires mad capital with guaranteed slow safe return. But making 12k a year isn't really 12k with inflation.
My method requires way less capital with fast high risk return.
To each their own I guess. Whatever works for you.
Yeah, let’s get a bunch of people who aren’t savvy investors to day trade and hope they don’t lose their life savings.
I got a trade job that pays 5k every 2 weeks. But than again I actually enjoy working like a man. Still got 3 days off a week too.
Sweet!
dividend yield like that will not matter if the stock isnt even rising because that $12000 alone is only a ~6% yearly return which is well below the s&p 500 avg
ET pays .31 per share and really good long term growth
With less than $170k, you could learn skill, or you could start a business you control, and make more that $1000 a month and get tax incentives to keep more of your earnings.
Why is no one talking about the fact that in a perfectly stable market it will take 14 years just to break even? 😂😂😂
If you’re ignorant enough to invest 160k for a 1k a month return. Then you deserve 1k a month in return.
Better idea. 💡 take 160k buy an acre of land and put two mobile homes on the land and rent them both out for 1400 a month. Then take out an equity loan on the two properties buy a third rent it out for 1400 a month. Take the balance of the equity loan and put it in the bank.
Now you have $4200 a month of residual income. With a payment around 1k and you have 40k in the bank that you earned tax free because it’s debt and you haven’t made any capital gains to be taxed. You can now take that 40k and play stocks and try and pay the loans off inside of a few years.
If you don’t want to be a landlord then be a landholder. Sell your properties, hold the note make 8% for poor credit home buyers and if they default you take it back and sell it again.
Moral of the story is. Don’t ever ever ever fall for this age old crime against the poor and middle class. Putting your money into a garbage stock and paying 30% off the top of all your earnings to the government. Terrible investment advice.
I saw that reality income has a 5% div yield. I also saw they pay monthly
Do they pay 5% monthly or do they pay the 5% of the year over the span of 12 months?
Year
Math wizard
🤣🤙
Go get a CD at local credit union…