How to Make $100 Per Month in Dividends

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  • Опубліковано 27 кві 2022
  • How to make $100 per month in dividends (the math).
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    You'll need quite a bit of cash invested to make $100 a 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 in order to make $100 per month in dividend payments.
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    #honestfinance #dividends

КОМЕНТАРІ • 1,7 тис.

  • @HonestFinance
    @HonestFinance  Рік тому +98

    Hope this helps with some basic math. Enjoy :)
    Watch more dividend videos: Dividend Investing
    ua-cam.com/play/PLOmIpJDqCR-I0Iy8QzGmwobNomYdey1Xe.html

    • @r.alexander9075
      @r.alexander9075 11 місяців тому +3

      Some better dividend yields:
      Altria NYSE:MO
      Realty Income Inc. NYSE:O
      JP Morgan Equity Income ETF ARCA:JEPI
      All have 8+% yields

    • @andrewmorales5485
      @andrewmorales5485 10 місяців тому

      What if you wanted to make $100 a month in 12 monthly stocks dividends companies to make $100 in each of them

    • @wulfseig1864
      @wulfseig1864 9 місяців тому +2

      Thank you

    • @andrewmorales5485
      @andrewmorales5485 9 місяців тому

      @@wulfseig1864 cause that would make $1,200.00 that neither you or I have right now so why not do it that way both in 12 different monthly and quarterly stocks dividends shares that is $2,400.00 than why not go further into Canadian monthly and quarterly stocks dividends companies and united kingdom monthly and quarterly stocks dividends companies you have $4,800.00 then reinvest those dividend payout into all of them double your money to $4,800.00 in all of them till it adds up to $19,200.00 then after taxes reinvest into making $38,400.00 close to $40k a month so quit while you're a head and enjoy your life

    • @OKBAOK
      @OKBAOK 6 місяців тому

      Thanks for the info, the fund to invest is the problem

  • @DodgeMuscle
    @DodgeMuscle Рік тому +5802

    At least he's being honest people... He's not gonna give us a get rich quick lie! That's why he's name is honest finance for a reason, he's being honest!

  • @emplays22
    @emplays22 Рік тому +4709

    step 1: find $46K

  • @NicholasBall130
    @NicholasBall130 26 днів тому +526

    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.

    • @EleanorBaker474
      @EleanorBaker474 26 днів тому +6

      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.

    • @StocksWolf752
      @StocksWolf752 26 днів тому +2

      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.

    • @StacieBMui
      @StacieBMui 26 днів тому +2

      Could you recommend your advisor? I'll be happy to use some help.

    • @StocksWolf752
      @StocksWolf752 26 днів тому +2

      Sonya lee Mitchell is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.

    • @grego6278
      @grego6278 23 дні тому +1

      I searched her up, and I have sent her an email. I hope she gets back to me soon. Thank you

  • @svenoliver6040
    @svenoliver6040 Місяць тому +72

    This is amazing. “How to build wealth

    • @svenoliver6040
      @svenoliver6040 Місяць тому

      The first step to building wealth is figuring out your goaIs and risk toIerance - either on your own or with the heIp of a financiaI pIanner, and foIIowing through with an inteIIigent pIan, you wiII gain financiaI growth over the years and enjoy the benefits of managing your money.

    • @svenoliver6040
      @svenoliver6040 Місяць тому

      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 soon. Give this a try and attain good-returns.

    • @AnthonyCarrion-wk9ng
      @AnthonyCarrion-wk9ng 27 днів тому +2

      @@svenoliver6040 lolol xD

    • @ummmummm563
      @ummmummm563 15 днів тому

      It's always a scam thread on these type of videos 😂😂😂​@AnthonyCarrion-wk9ng

  • @jakouriholmes9615
    @jakouriholmes9615 Рік тому +2003

    Man you just explained it so quick and easy I tried to find a 1 hour long video to understand this when I just learned it in 30 seconds🤦🏾‍♂️

    • @HonestFinance
      @HonestFinance  Рік тому +91

      Well thanks. There’s more to it, but that’s an easy way to know quickly

    • @whitakerjl123
      @whitakerjl123 Рік тому +21

      @@HonestFinance How can first time investors make money when they have to invest a house to get 100 a month?

    • @az21bob666
      @az21bob666 Рік тому +4

      you start small maybe enough to get 5 a month then 10

    • @whitakerjl123
      @whitakerjl123 Рік тому

      @@az21bob666 Maybe, I just purchased some stocks time to show and tell

    • @MrThitikla
      @MrThitikla Рік тому +1

      $CLM - Cornerstone strategic value fund
      yields between 21-25%
      Currently 24.01% right now
      $5,000 USD invested should make $100 a month.
      Honest Finance can you please confirm?

  • @tinydough8746
    @tinydough8746 Рік тому +18

    Formula:
    (d x 12)/r = C
    d = dividend wanted per month
    12 = 12 months in a year
    r = dividend yield/rate
    C = capital needed to get the amount of dividends per month

    • @HonestFinance
      @HonestFinance  Рік тому +2

      Thank you!!

    • @tinydough8746
      @tinydough8746 Рік тому +2

      @@HonestFinance Np!! It's just for anyone who wanted to see the formula for it :D

    • @YJ-7
      @YJ-7 17 днів тому +1

      You just change it from 12 to 4 if the dividends pay quarterly right

    • @tinydough8746
      @tinydough8746 15 днів тому

      @@YJ-7 That is correct
      An example calculation for reference would be if I wanted $7500 per quarter (4) in dividends (d), with a dividend yield of 4% (r), this is how much capital (C) I would need:
      d = Dividends wanted per quarter
      4 = 4 quarters in a year
      (d x 12)/r = C
      ($7500 x 4)/0.04 = C
      $30,000/0.04 = C
      $750,000
      (This is just in case anyone wanted an example)

  • @DailyChuckles724
    @DailyChuckles724 Рік тому +492

    Next video idea: How to make $46k in a month.

    • @turtle811
      @turtle811 Рік тому +19

      It can be done in roughly 2 years for someone middle class or slightly below.

    • @AidanAlbano
      @AidanAlbano Рік тому +4

      ​@@turtle811what salary is considered middle class?

    • @turtle811
      @turtle811 Рік тому +9

      @Aidan That really depends on where you live, if you have children, and sources of income. For example $200k a year would be a lot of money in certain states, but go somewhere like NYC or certain areas of California and you will be struggling as the cost of living is significantly higher.

    • @LZin-uk5nh
      @LZin-uk5nh Рік тому +17

      ​@@turtle811 Tell me you have 0 zero financial knowledge without telling me. The average american is making 50k a year my guy
      200k annually is top 2 percent earners

    • @turtle811
      @turtle811 Рік тому

      @L. Zin You can still save up $40k in 2 years, making $50k. My first job out of school I was making around $40k while living with my significant other. I also did odd jobs on the side to gain more, such as doordash, IT work, webdesign, etc. Once you cut out all the things not needed to survive, it's easy to save and if invested it will grow. In 2 years I was able to become debt free and have enough for a down-payment on a house. It's not rocket science, it just takes extra effort and you need to change how you live for a bit. Keep in mind nobody becomes successful at saving large sums of money by just working their day Jon, buying whatever they want, and not doing extra work. You need to be money hungry, this is what separates the poor from higher classes. I grew up poor and escaped it by working my ass off, had to start working at 15 to support my family, I quickly discovered I didn't want the rest of my life to be that way. It 100% is possible.

  • @CloakedJ24
    @CloakedJ24 Рік тому +678

    Meanwhile I'm struggling to keep $100 in my account ☠️

    • @Yk-te2gu
      @Yk-te2gu Рік тому +17

      Same 💀🤣

    • @Portapottypossum
      @Portapottypossum Рік тому +8

      How???

    • @honeyhahn
      @honeyhahn Рік тому +57

      That should be a red alert to yourself that you can do better. Start as little as $10 a month that you buy dividend powerhouses like SCHD. Automate it from your paychecks. Anyone can do it

    • @HonestFinance
      @HonestFinance  Рік тому +63

      It just takes routine

    • @BiG-JuPO1O1
      @BiG-JuPO1O1 Рік тому +11

      Same but I'm in college and I hardly get paid much and struggling to keep it all together

  • @Tegawe
    @Tegawe Рік тому +354

    This is why the wealthy always say "save your money!" If you got $46k to invest, then you're not strapped for that cash. Having your money work for you is the ultimate goal. I'd love to clock into my day jobs, make my money, and also be making money from my money while I'm making money. Day job pays the bills, investments go for growth, dreams, adventure and maybe a little fun.

    • @eldynamico2022
      @eldynamico2022 Рік тому +1

      My money’s muh 817ch LOL

    • @reaper-sz5tm
      @reaper-sz5tm Рік тому +7

      You can do that with a 401k. Day job to pay the bills, big retirement account for dreams and growth. I’ve put $75,000 in my 401k in 4 years and I’m 29, I plan on retiring a multi millionaire. Invest in S & P 500 index funds, you’ll do well.

    • @C1K450
      @C1K450 Рік тому +4

      @@reaper-sz5tm both 401K and Dividends has their place. 401K if you enjoy earning multiple streams of income through stocks and day job. Dividends are good for people who wants passive income and want to spend time doing what they want to do while the money works for them. Of course both routes you have to work hard and invest smart to attain success in both stocks and 401K.

    • @paquesepas6696
      @paquesepas6696 6 місяців тому

      ​@@reaper-sz5tmthe only good thing a 401k is for is getting the company match after that it's not even smart to put more since the smarter thing is going with a Roth Ira which all should have

    • @bussybusterblade8799
      @bussybusterblade8799 27 днів тому

      @@reaper-sz5tmlol max contribution is like 7500 a year bozo

  • @jamesmir89
    @jamesmir89 Місяць тому +2

    Honest finance is his name and showed that how much it takes using realistic figures. Honestly.
    Great vid.

  • @richhornie7000
    @richhornie7000 8 місяців тому +42

    This short gives us more education in 30 seconds than 90% of finance channels on UA-cam combined

  • @MrProphecyX
    @MrProphecyX Рік тому +194

    With $46k you can make easily $1770 in an savings bank account with a 3.85% APY interest rate.

    • @josephwall9161
      @josephwall9161 11 місяців тому +14

      Or cd’s

    • @MrGodchild15
      @MrGodchild15 11 місяців тому +8

      Or more in crypto

    • @alannabors
      @alannabors 10 місяців тому +3

      @@josephwall9161agreed I’d do CDs over just letting that sit in a bank acct.

    • @blakenilsen9852
      @blakenilsen9852 10 місяців тому +19

      Where do you get 3%? Isnt everything less than 1%?

    • @alannabors
      @alannabors 10 місяців тому +2

      @@blakenilsen9852 CDs

  • @AdebayourQuadri
    @AdebayourQuadri 4 місяці тому +155

    As an investing enthusiast, I've kept aside a good sum of capital to invest for financial independence and early retirement, but my concern right now is the market rally being propaganda. Is this a good time to buy stocks, or do I wait for the crash?

    • @ElvinWright
      @ElvinWright 4 місяці тому

      @@ConnieKelly54 Congrats! The market to me is like a lucrative chess game, incredibly difficult to outperform, it's all about understanding how the world moves, its history, and psychology... mind disclosing info about your CFP? I'm quite curious.

    • @ckdub1888
      @ckdub1888 3 місяці тому

      I’m only 32 and have invested 1000 between crypto like bitcoin cash and solana and a 500 in stocks I bought low like amc entertainment at 4.32 which had peaks over 300 per share. I’m buying holding hoping for better days at the same time I can afford to lose what’s in there and if or when I lose it I will have learned a lot how it works and operates and I’m going to stack cash and wait for the inevitable crash that’s coming but if trump gets in I don’t see a crash happening and will probably invest more. What’s your thoughts on that plan

  • @ggpl8117
    @ggpl8117 Рік тому +83

    alternate title:
    How to lose 100$ a month from inflation, taxes and intrest rates

    • @lokeyhud2516
      @lokeyhud2516 Рік тому

      Index funds

    • @I_like_turtles_67
      @I_like_turtles_67 Рік тому +15

      You don't understand how dividends work. I'd suggest educating yourself about DRIP, Compound Intrest, YOC & other investment terminology.

    • @OSoloJr
      @OSoloJr Рік тому +1

      That's a big bank account your referring to

    • @OurNewestMember
      @OurNewestMember Рік тому

      This isn't completely true -- you can also lose a bunch of money on the shares, too

    • @weird-guy
      @weird-guy Рік тому +2

      The government in the corner, In my country is taxed at 28%😂

  • @arbsan8366
    @arbsan8366 Рік тому +8

    Straight forward and to the point THANK YOU🙏🏽

  • @R26Roman
    @R26Roman Рік тому +32

    This is exactly the information people need to know to have a real expectation on what investment is really like the last time you have the last time you have to invest.

  • @whitakerjl123
    @whitakerjl123 Рік тому +43

    I respect the honesty in this video. Investing 46- thousand only to get 100- monthly sounds disheartening

    • @harmleyten4
      @harmleyten4 Рік тому +5

      Don't forget that the value of that 46k is going up in the long run

    • @whitakerjl123
      @whitakerjl123 Рік тому +6

      @@harmleyten4 Yes but that's an investment most people can't make

    • @harmleyten4
      @harmleyten4 Рік тому +5

      @@whitakerjl123 not to start with, you have to start small

    • @harmleyten4
      @harmleyten4 Рік тому +7

      @@whitakerjl123 also a 100 a month for life is no joke, which will also increase without doing anything. Plus the price he showed in the video is the highest the coca cola stock has ever been, it's 58 dollar per share atm, which will greatly decrease that 46k for the same 100 dollars a month

    • @whitakerjl123
      @whitakerjl123 Рік тому +3

      @@harmleyten4 I agree I purchased some stocks that are doing well that's cheap under $500 a share I'm constantly paying into for more shares

  • @swapw
    @swapw Рік тому +17

    2.59% of annual return is lower than the rate of inflation, therefore you are essentially losing money annually by utilizing this form of investment.

    • @HonestFinance
      @HonestFinance  Рік тому +13

      Yes, but if the stock price increases over time, then it can offset inflation

    • @rodrigovaccari7547
      @rodrigovaccari7547 Рік тому +7

      Yeah if you completely ignore stock valuation. You can also pick a stock that pays no dividend at all and say it's worth nothing while it valuates 100% per year.

    • @AN-xs7dw
      @AN-xs7dw Рік тому +3

      A high interest savings account currently pays 3.30%. no risk...lol

    • @dawn_monraz
      @dawn_monraz Рік тому

      ​@@AN-xs7dwexactly!

    • @brackabrack
      @brackabrack 4 дні тому

      @@AN-xs7dw dividends from savings accounts are taxable just like wages. Dividends in a Roth IRA are not taxed.

  • @jcnlala9461
    @jcnlala9461 Рік тому +27

    At least you didnt sugar coat it😂😂😂

  • @josephsaeteurn9158
    @josephsaeteurn9158 Рік тому +91

    for my $23K porfolio, i have been collecting between $120 - 150 a month relatively safe.

    • @KILLZONE56
      @KILLZONE56 Рік тому

      Thats weak lol I'm doing 2k a week on 25k account. Get up sucka

    • @Turtlesp5000
      @Turtlesp5000 Рік тому +4

      @@josephsaeteurn9158 its possible with the right etfs or reits

    • @Boostisablast
      @Boostisablast Рік тому

      I’m collecting like $30 a qtr in my 30k portfolio haha

    • @Tobi21089
      @Tobi21089 Рік тому +1

      I go full ape mode with 10-30x leverage and 250$ invested so far I make around 10% a day sometimes with hard losses but that happens too everyone 😂

    • @DavidRamseyIII
      @DavidRamseyIII Рік тому

      I don’t know if I would call 23k a “portfolio”

  • @jackyanderson9330
    @jackyanderson9330 10 місяців тому +2

    This is an honest advice and very helpful for every investor. I love that.

  • @unpopularopinion149
    @unpopularopinion149 Рік тому +14

    Next explain DRIP and yield on cost when the price appreciates as well as the CAGR

  • @Quadbvke
    @Quadbvke Рік тому +14

    That’s because your only depending on one stock with a low yield percent there’s reliable stocks out there that have a 7-10 percent yield

  • @Smoove_J
    @Smoove_J Рік тому +35

    Think about this. To replace a yearly income of $45k you would need to invest $1,731,451. Dividend investing is not a get rich quick scheme.

  • @toslavnataliiu0
    @toslavnataliiu0 2 місяці тому +192

    Investing in safe and reliable investment plans, including stocks, offers a pathway to financial security and growth. Amidst economic uncertainties, such investment avenues serve as pillars of stability. By diversifying one's portfolio across various safe investment plans and stocks, individuals can effectively mitigate risks while capitalizing on opportunities for long-term wealth accumulation.

    • @ramunblagen8688
      @ramunblagen8688 2 місяці тому

      He is right ! Dividend stocks are available across various sectors of the economy, allowing investors to diversify their portfolios. By investing in dividend-paying companies from different industries, investors can spread risk and potentially enhance returns.

    • @rooppertti2722
      @rooppertti2722 2 місяці тому

      I Agree with your viewpoint, but it's essential to exercise caution when selecting stocks or consider partnering with a Financial Advisor. By engaging a professional, you gain a significant advantage, as they provide valuable guidance to navigate the complexities of the market effectively.

    • @maleoctavi
      @maleoctavi 2 місяці тому

      With over $300k in my bank account, I've attempted to construct a stock portfolio, only to face continuous losses. This compelled me to take a pause from the endeavor until I stumbled upon your comment. I would greatly appreciate it if you could recommend a Financial Advisor to guide me through the intricacies of the market.

    • @maleoctavi
      @maleoctavi 2 місяці тому

      I've attempted to construct a stock portfolio, only to face continuous losses. This compelled me to take a hiatus from the endeavor until I stumbled upon your comment. I would greatly appreciate it if you could recommend a Financial Advisor to guide me through the intricacies of the market.

    • @rooppertti2722
      @rooppertti2722 2 місяці тому

      Attempting to do it yourself is one of the mistakes everyone does but Involving SUSAN MARA BERCHAK , to manage your portfolio and make strategic decisions regarding the market will go a long way for you .

  • @googlesucks925
    @googlesucks925 Рік тому +20

    Subbed for your honesty in this video. The number of people who think stocks and shares is some magic way of getting rich overnight is insane. Takes a long time, a lot of discipline and a lot of money.

  • @dylanroberts93
    @dylanroberts93 Рік тому +71

    As of rn I have 49.003 shares of coke one day I will be able to live off my dividends. I know it’s a long journey but I’m 29 so I have a lot of life left to live.

    • @Ultimatelocke
      @Ultimatelocke Рік тому

      Later that day he was hit by a truck and died moments later.

    • @OG.Salinas
      @OG.Salinas Рік тому +4

      Your my inspiration

    • @zestywolf2489
      @zestywolf2489 Рік тому +2

      Aye, good luck man. 👍

    • @dylanroberts93
      @dylanroberts93 Рік тому +1

      @@zestywolf2489 thank you man I appreciate it

    • @zestywolf2489
      @zestywolf2489 Рік тому +1

      @@dylanroberts93 aye, your welcome. But do you got any companies that would be good for a beginner?

  • @ddssv
    @ddssv Рік тому +3

    thank you for the raw uncut truth

  • @MrRaja
    @MrRaja 11 місяців тому +7

    Step 1: afford a calculator 😅

  • @DJNeonWolf
    @DJNeonWolf Рік тому +17

    AT&T pays a 7.59 div yield

    • @ivanhernandez7395
      @ivanhernandez7395 Рік тому

      Very shit company

    • @DJNeonWolf
      @DJNeonWolf Рік тому

      @@ivanhernandez7395 elaborate?

    • @ivanhernandez7395
      @ivanhernandez7395 Рік тому +3

      @@DJNeonWolf sorry i took long to respond. But they are in heavy debt. Like super bad debt and the dividend they put out eats away a lot of their free cash flow and is not sustainable.

    • @Justchilin1
      @Justchilin1 2 місяці тому +1

      Still need 15000 to make $100 buck a month on AT&T

  • @EmogiBags
    @EmogiBags 9 місяців тому +6

    as a young man whos started to get his shit together at the age of 23, i appreciate this, cheers

  • @ladyruler9585
    @ladyruler9585 3 місяці тому

    Thank you for breaking this down in such a straightforward way.

  • @derrellbabb
    @derrellbabb Місяць тому

    Concise and to the point. Great video.

  • @nostalgialad9467
    @nostalgialad9467 Рік тому +3

    Could be different if you had 2%+ div over say 5 to 10 companies some companies offer more, so I would spread my money around

  • @Existomalus
    @Existomalus Рік тому +4

    Come on guys, it's brilliant! Pay 46k NOW and in 38 years you'll have it back! What's not to love about that?!

    • @jayzee6432
      @jayzee6432 Рік тому +2

      How can u be sure you will live 38 years from now?

    • @Existomalus
      @Existomalus Рік тому

      @@jayzee6432 I put it on my calendar. Therefore, it's scribed into existence

    • @jayzee6432
      @jayzee6432 Рік тому +1

      @@Existomalus cool story

  • @blazetino5713
    @blazetino5713 22 дні тому +1

    Verizon has like a 6.74% dividend yield, which is more than Coca Cola. I think it’s even cheaper, too

  • @Productreviewerusa101
    @Productreviewerusa101 10 місяців тому +1

    Simple and straight to the point!👍

  • @Casey-summer
    @Casey-summer 7 місяців тому +3

    The most popular investment portfolio strategies include diversification, where you spread investments across different asset classes to manage risk. Another is the growth strategy, focused on capital appreciation through high-risk, high-reward assets. Income-oriented strategies target regular income from dividend stocks or bonds. Finally, there's the value strategy, seeking undervalued assets for potential long-term gains.

    • @lilyhershey1
      @lilyhershey1 7 місяців тому +2

      According to Warren Buffett, dividends are less valuable for growing businesses and more suitable for established ones. Investing in companies that offer dividends might be seen as parking capital for steady returns, especially for those relying on portfolio income. This approach resembles bond investing, serving as a means of generating consistent earnings.

    • @sloanmarriott5
      @sloanmarriott5 7 місяців тому +1

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      @louie-rose7 7 місяців тому +1

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      @sloanmarriott5 7 місяців тому

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      @louie-rose7 7 місяців тому

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  • @kimchi8022
    @kimchi8022 Рік тому +3

    Thanks for being honest!

    • @HonestFinance
      @HonestFinance  Рік тому

      You’re welcome. You can’t sugarcoat the truth ;)

  • @HectorRodriguez-zh1rf
    @HectorRodriguez-zh1rf Рік тому +1

    Love the honesty

  • @GaliantSilverhawk
    @GaliantSilverhawk 10 днів тому +1

    That sounds great. I'll just pick up my spare 49k a month i left under the couch

  • @fraxonthefurry21
    @fraxonthefurry21 Рік тому +51

    And then taxes takes a large portion of that.

    • @soflo_cini
      @soflo_cini Рік тому +21

      Actually If your single and make under 40k or married filing together making under 80k per year you don’t have to pay taxes on ordinary dividends 😉 let’s hope Biden doesn’t change that

    • @recursion.
      @recursion. Рік тому +8

      @@soflo_cini cmon dude no one will have 40k on investments who earns less than 40k a year

    • @twentytwogunz8142
      @twentytwogunz8142 Рік тому +6

      @@recursion. dude did you not read

    • @McShibby10
      @McShibby10 Рік тому +2

      @@recursion. not true

    • @bradensteiner3950
      @bradensteiner3950 Рік тому +5

      @@recursion. I was making $25k a year and saved up 40k in 2 years actually 😂. Just gotta not spend your money and invest it instead. I actually day trade full time now. I also mentor, reply if curious on more info!

  • @Willhgf
    @Willhgf Рік тому +34

    I would rather put that 46k into a high yield savings account that is insured by FDIC and has 3.75% interest rate.

    • @HonestFinance
      @HonestFinance  Рік тому +2

      Ya. Pros and cons to both

    • @Fief13
      @Fief13 Рік тому +9

      Except the yearly inflation rate is 6.4% so you would still loose 3% of value

    • @Willhgf
      @Willhgf Рік тому +1

      @@Fief13 Better than the dividend yields at the end of the day.

    • @HonestFinance
      @HonestFinance  Рік тому +2

      Yes, but it’s better than losing 6.4%

    • @germancantu9847
      @germancantu9847 Рік тому +4

      I've had my CD account for about 12 years now paying around 3.5% - 4.5% FDIC insured and don't regret it I've been doing really good that way.

  • @TylerHughesExplains
    @TylerHughesExplains 13 днів тому

    This is straightforward but people should keep in mind that you're going to need more than that because you're going to be taxed on those dividends and the amount your taxed depends on if you invested in qualified stocks or nonqualified stocks as that will determine how much you are taxed

  • @R1deFast
    @R1deFast Рік тому +2

    I've been doing RC and TWO, both have high div/yields. RC is at 14% and TWO is a little over 15% atm

  • @donmcflyshorts
    @donmcflyshorts Рік тому +4

    thats crazy considering the average person makes like $30k/year. to make that same amount per year you'd have to have 1.158M invested 😭

    • @johnconnor7501
      @johnconnor7501 Рік тому +1

      Robinhood pays more at 3.75% with no risk or time restraints.

    • @donmcflyshorts
      @donmcflyshorts Рік тому

      @@johnconnor7501 thanks for this very useful advice! 💯

    • @MMOplayeerr
      @MMOplayeerr 7 місяців тому +2

      In the usa yeh. In europe its around 20k and eastetn europe is just 8-10k

  • @henrytang2203
    @henrytang2203 Рік тому +64

    That div yield is worse than the long term average for index funds, and it costs 46K. Better just to eat out less.

    • @DanRichter
      @DanRichter Рік тому +4

      I mean you still get the (hopefully) appreciating asset on top of the dividends. The S&P dividend yield is only 1.82%

    • @night7912
      @night7912 Рік тому +7

      best case is to buy stock in a company that will continue to grow, while paying you dividends.

    • @HonestFinance
      @HonestFinance  Рік тому +5

      I agree 100%

    • @ianleui7007
      @ianleui7007 Рік тому

      ​@@night7912 or just eat out less lol

    • @night7912
      @night7912 Рік тому +4

      @@ianleui7007 a share of coke in the 1940s would have been around a dollar, if you held until today you would have turned it into around a million

  • @TheHeavyModd
    @TheHeavyModd Рік тому +2

    Fairly accurate, though you should maybe have stressed that the dividend yield is backward looking and subject to fluctuations. Some companies may have a very high div yield, but that doesn't mean they will keep paying that high a dividend... or a dividend at all. It requires more involved research into a company than that.

  • @WilliamWonka
    @WilliamWonka Рік тому +2

    I’m at ~$890/yr with ~$23,000 invested. Diversification is pretty clutch.

  • @rjjohn2241
    @rjjohn2241 Рік тому +43

    I only have 9,800 invested and I already make 58$ per month in dividends, (portfolio yield is 5.8%)

    • @HonestFinance
      @HonestFinance  Рік тому +10

      Great job!!

    • @flrambo
      @flrambo Рік тому +5

      I don’t get it isn’t that a bad investment $9,000 k to only earn $58 a month

    • @Yuvenn
      @Yuvenn Рік тому

      @@flrambo I thought the same 😅

    • @rjjohn2241
      @rjjohn2241 Рік тому

      @@flrambo the point is that is a good starting point when your focused on long term dividend investing, and yes it’s a great investment because this stands for life, won’t loose it to the system like you Growth investors.

    • @rjjohn2241
      @rjjohn2241 Рік тому +8

      @@flrambo and if you guys knew anything about investing then you wouldn’t be asking this question …. do the math 9,500$ with a 5.8 yield = 58$ a month approximately, 696$ annually.

  • @jeang3258
    @jeang3258 Рік тому +3

    Inflation will eat up those dividends

    • @HonestFinance
      @HonestFinance  Рік тому

      Yes, but the stock price and dividend can also go up over time

  • @carlafuqua1685
    @carlafuqua1685 Рік тому +1

    great! thanks for the simple straightforward video

  • @alexgutierrez5182
    @alexgutierrez5182 4 місяці тому

    Thanks you brother for this knowledge

  • @alan30189
    @alan30189 4 місяці тому +20

    One problem: Coca-Cola doesn’t pay monthly dividends. They pay them quarterly. So you’ll collect $300 every three months.

    • @romanplays1
      @romanplays1 2 місяці тому

      a good alternative is realty income. wich does pay out monthly and has a pretty good yield (5.81)

    • @funfungerman8401
      @funfungerman8401 2 місяці тому +1

      at the end, its still the same ^^
      yeah a REAL monthly dividend is psycholigcal was better but theres no difference if you get 100€ each month or 300€ each qurater at the end of the day (year lol) you still have 100€ per month
      but yeah as written, realty income is good, stag industrial too the "Problem" with these is that monthly-paying stocks are ALWAYS overvalued in terms of pure buisness numbers (margin, turnover) etc because people are ready to pay more for a dividend if it pays monthly ^^
      one thing that i do is I buy 2 etfs
      vanguard ftse all word high div which pays 3,6,9,12 month and then fidelity global or us quality income which pays, 2,5,8,11 so you geat 8 months in the year dividend with something more stable
      sadly i havent found a GOOD third etf which pays the rest months aka 1,4,7,10 :(

    • @romanplays1
      @romanplays1 2 місяці тому

      @@funfungerman8401 its actually better monthly..once in larger amounts. but not by much. if you'd reinvest the monthly dividend into more of the stock. you'd have ended up with more dividend returns than if you just chose the quarterly option. but other than that. true.

    • @bunkeyscow
      @bunkeyscow Місяць тому

      @@funfungerman8401 take a look at jepq or spyi and they pay both monthly. There is a new stock thats paying weekly, xdte

  • @derekblades
    @derekblades Рік тому +5

    Awesome video!
    If only investing for cash flow this is importnant but mot people invest to see the asset grow as well.
    To calculate your YIELD you can use a 10Bii calculatior and figure your discounted cash flow over the life of the investment.
    This will give you the true ROI on your investment. It's not 2.5%

  • @user-xk4uw5fm3n
    @user-xk4uw5fm3n 14 днів тому

    Living up to your name my bro, Like the content a lot

  • @Abdul_Rahman86
    @Abdul_Rahman86 4 місяці тому +1

    First aim for $5 per month.
    Then $10 and so forth and so forth

  • @imperial_Dragnix
    @imperial_Dragnix 10 місяців тому +3

    In india we have a stock called Vedanta with 25% dividend heald 😎🥶🔥 so investing 4000$ can give 1000$ a year easily

    • @salih5342S
      @salih5342S 2 місяці тому

      Do you know any other stocks that gives high rate of dividend

  • @bongboyz6468
    @bongboyz6468 Рік тому +9

    As a dividend investor, he's right. He gave us the honest truth, but there are other examples with a higher yield which means less capital required to buy the stock

  • @lashun1st
    @lashun1st Місяць тому

    Thx 4 sharing, don't we have to look for a dividend that pays monthly ?

  • @PossumKommander
    @PossumKommander 6 місяців тому

    What if we include compound potential of dividend reinvesting? I think we can reach our goal with a smaller amout invested

  • @MERS03
    @MERS03 Рік тому +5

    Remember guys that the $100 monthly should be reinvested so you can take advantage of compound interest. That extra $1200 a year reinvested is going to add up a lot quicker than most would think

    • @HonestFinance
      @HonestFinance  Рік тому

      Yes DRIP all the way!!

    • @donaldlyons17
      @donaldlyons17 Рік тому

      Might make more getting a part time job once a week!!!!

    • @stormblade1199
      @stormblade1199 Рік тому +1

      You could literally make that in a month driving for Uber on the side :/

  • @bspiderm
    @bspiderm Рік тому +123

    This is probably the worst example you can give to show your point lol

    • @CASHYMUSIC
      @CASHYMUSIC Рік тому +5

      Yes I watched it 10 times and like !?

    • @xplicitgoofy1015
      @xplicitgoofy1015 Рік тому +6

      Yeah as your investment increases in value so does your dividend BecUse dividends get paid off of a percentage of the amount you have in the stock, not by a per share amount

    • @igobykil5311
      @igobykil5311 Рік тому +6

      Fr lol way too many other securities with a higher yield. SDIV is the highest yielding one for the cheapest I’ve seen so far.

    • @thecurtisfamily3810
      @thecurtisfamily3810 Рік тому

      😂 yep

    • @SIRHENNY1
      @SIRHENNY1 Рік тому +9

      So what, the fact don’t change. Thats what matters

  • @NPonlamuangsri
    @NPonlamuangsri 17 днів тому

    I really appreciate this and that you didn’t say “times it by.”

  • @cygen_divine1570
    @cygen_divine1570 3 місяці тому

    Thank you! Subscribed

  • @garrettspeakeasy
    @garrettspeakeasy Рік тому +6

    Not to fret. Invest every pay check and let the compounding interest work in your favor.

  • @superdannny
    @superdannny Рік тому +49

    that’s crazy. but thanks for being straight up about it

    • @HonestFinance
      @HonestFinance  Рік тому

      You’re welcome!

    • @WhosYouG
      @WhosYouG Рік тому +1

      Reinvest those dividends to compound dividends

  • @Matt_G824
    @Matt_G824 Рік тому

    Am I correct that if the stock prices goes up, the yield will go up as well?

  • @jacksputrid
    @jacksputrid 2 місяці тому

    “Look up any stock that pays dividends” bro this dudes the goat

  • @rootstriker1618
    @rootstriker1618 Рік тому +3

    If the stock goes down does that change how much u would get in dividends?

    • @HonestFinance
      @HonestFinance  Рік тому +4

      No. Only if the company changes dividend payments per share

    • @samfkt
      @samfkt Рік тому

      @@HonestFinance But on how I see it..... they adjust it every year or so.... so if the stock goes 10x they just lower the dividends making it 2-5 dollar per share no matter if one share is worth 30 dollars or 300 dollars in the future, you roughly get the same ammount in dividends per one single stock. All of them are like that? DIdnt see any other example or am I missing something here?*

  • @tewanwilson
    @tewanwilson Рік тому +15

    Straight forward. Love that

  • @segarinnajohnson4092
    @segarinnajohnson4092 4 місяці тому +1

    46k to get 100 a month is crazy 🤦‍♀️

  • @rclarke2456
    @rclarke2456 Рік тому

    Why can't everybody else be straight-to-the-point like this. All that talkin about nothing and this guy just straight to the point

  • @AlkaliIbrahim
    @AlkaliIbrahim Рік тому +21

    One short later and I’m already subscribed, I hardly do that. There’s something so straightforward about this explanation.

  • @MysticaReych
    @MysticaReych Рік тому +4

    We think that this is hard, it can be, but it will eventually snowball. Keep reinvesting your dividend income back into it !

    • @swift3495
      @swift3495 Рік тому +1

      No this is just awful of an idea. Much better ways to invest

    • @kurisu3000
      @kurisu3000 Рік тому

      @@swift3495 Name some then

    • @swift3495
      @swift3495 Рік тому

      @@kurisu3000 There are a billion different business ideas. Come up with your own. But you're probably incompetent

    • @stormblade1199
      @stormblade1199 Рік тому

      See you at 100 years old when you can finally buy yourself a large coffee

  • @stefaniemenstell-vu4ss
    @stefaniemenstell-vu4ss Рік тому +1

    Nice short! Thanks a lot 😊

  • @sebastianvargas525
    @sebastianvargas525 25 днів тому

    Well informative 👍🏾

  • @AllThingsKimberlyWV
    @AllThingsKimberlyWV 2 роки тому +4

    Great video. Thank you

  • @rolexer
    @rolexer Рік тому +4

    cds pay 5% it is much simplier with less risk.

    • @HonestFinance
      @HonestFinance  Рік тому

      Right now they’re a great option

    • @siegfriedfurtwanglerknappe6188
      @siegfriedfurtwanglerknappe6188 Рік тому

      Yes and no. Stocks can also increase in price and raise their dividends. Whereas when your CD matures, you might not be able to find CDs at 5% anymore. Both have pros and cons.

    • @rolexer
      @rolexer Рік тому

      @@siegfriedfurtwanglerknappe6188 find me a stock with no risk.

    • @siegfriedfurtwanglerknappe6188
      @siegfriedfurtwanglerknappe6188 Рік тому

      @@rolexer CDs also have risk and very little potential upside. Higher risk usually means higher returns.

  • @HyphyGaming_
    @HyphyGaming_ 4 місяці тому +1

    Bro forgot to mention step one is to get 46k first 💀💀

  • @liberalstudiesmaterials899
    @liberalstudiesmaterials899 Рік тому

    May I ask which stock should one buy now please?

  • @bowles85
    @bowles85 Рік тому +26

    Or 100.00 divided by the stock last dividend payment and thats how many shares you'll need....

    • @georgem5512
      @georgem5512 Рік тому

      So for cocacola I would need 3861 shares?

    • @bowles85
      @bowles85 Рік тому +1

      @georgem5512 looks like ko last dividend payment 1.76 a share so 100÷1.76=56.8181818182 shares

    • @bowles85
      @bowles85 Рік тому +1

      Ko pays quarterly but this method is better for monthly paying stocks like O

    • @georgem5512
      @georgem5512 Рік тому

      @@bowles85 brother I don t understand you sorry. I thought 1,76% is a 0,0176 not 1,76%

    • @bowles85
      @bowles85 Рік тому

      @georgem5512 the 1.76 is the dividend payment and your divide it by 100 (dollars) to see how many shares you will need but a monthly dividend would be a better example.

  • @angelchristinem
    @angelchristinem Рік тому +54

    there's a lot of high paying dividends out there.

    • @infamousdon82
      @infamousdon82 Рік тому +3

      What are some of them?

    • @angelchristinem
      @angelchristinem Рік тому +6

      @@infamousdon82 i just got an $800 from RBCN. but my most favorite so far is USOI. it's an ETN. OILK is also good. it's an oil ETF. it's fairly new so it's not that popular yet.

    • @kingbeast6792
      @kingbeast6792 Рік тому +2

      @@angelchristinem RBCN is definitely not going to be paying $11 a month in dividends, the price will either drop below $3.00 or the dividend will be stopped completely

    • @angelchristinem
      @angelchristinem Рік тому

      @@kingbeast6792 i totally agree with you. it might just be a one time deal.

    • @lisa8406
      @lisa8406 Рік тому +2

      @@angelchristinem how much did you invest !!?? 🙄

  • @lqdxoni1
    @lqdxoni1 2 місяці тому +1

    etf's riskier yet monthly dividend rolled over speeds up your dream though small to new heights. 10k gets you between $100-$400 monthly depending on choices.

  • @awillaims8653
    @awillaims8653 Рік тому +16

    I get close to $60 a month from one company and I only have $1700ish in it

    • @Emaze300
      @Emaze300 Рік тому +2

      Which company?

    • @awillaims8653
      @awillaims8653 Рік тому +5

      @@Emaze300 usoi I had 400+ shares but they did an insane stock split so now I have 20 they costed me $4 per share for the 400 but now they cost $90ish a share

    • @stormblade1199
      @stormblade1199 Рік тому +6

      $1700 total invested and making $60/month? That would be $720/year or a 42% return annually lol stop

  • @kcinyrenh6632
    @kcinyrenh6632 2 місяці тому

    How do you figure out if the pay quarterly or annually

  • @Truckernc
    @Truckernc Місяць тому

    Man that’s really nuts

  • @michaelc1138
    @michaelc1138 Рік тому +5

    There’s etfs that pay 10 to 20% annually you just have to look for them. Plus coke is treated like an index fund.

  • @mrmotorcycle9459
    @mrmotorcycle9459 Рік тому +4

    Remember to reinvest your dividends to compound them over time. It will still take many years but it will help

  • @Griflordstudios
    @Griflordstudios Рік тому +1

    You can get a better interest rate with just hold on Robinhood or a 3% holdings. 2.5 mill is 75k a year

  • @moviesandmysteries4538
    @moviesandmysteries4538 4 місяці тому +1

    in india by putting this same amount in bank or post office you can get around 290$ monthly or 3500 us dollars per year with 100% guarantee of safety !!😊

  • @Kenwood..
    @Kenwood.. Рік тому +6

    Any calculator made after 1970 has a % percent sign, you domt have to move the decimal. Just hit 1200 ÷ 2.79 % =

    • @tias.6675
      @tias.6675 4 місяці тому

      The tone of this comment...

    • @Kenwood..
      @Kenwood.. 4 місяці тому

      ​@@tias.6675dispute it...

  • @clappincheeks5584
    @clappincheeks5584 Рік тому +3

    How do I get those dividend payments to stack up and can I make them all drop on a certain credit or debit card?

    • @HonestFinance
      @HonestFinance  Рік тому +2

      Just own more shares to make more in dividends. And the money will go in your bank account

  • @Cellphaxg
    @Cellphaxg 4 місяці тому

    Great video thanks for the update

  • @davidd577u
    @davidd577u Рік тому +6

    Or put 46k in into a high yeild savings with 3% interest and make an extra 180 bucks a year with lower risk lol.

  • @DatsDoodoBaby
    @DatsDoodoBaby Рік тому +3

    I’ve had hundreds of people try to convince me to do this, and anytime I Mathed it out, I got calculations like that. At that point I can get a better return investing the money myself, glad to see I wasn’t doing it wrong, thank you!

    • @hectormiguel05
      @hectormiguel05 Рік тому +3

      That's just the yearly return for dividends. Not taking into consideration the stock price going up in value overtime.

    • @HonestFinance
      @HonestFinance  Рік тому

      That’s correct

    • @stormblade1199
      @stormblade1199 Рік тому

      ​@@hectormiguel05 Dividend stocks have laughable appreciation regardless

  • @TastyGoomba
    @TastyGoomba Рік тому +1

    1.2 million will pay out about 30k per year and minus 15% tax (dividend tax), so 25k cash per yr. is that correct?

    • @donaldlyons17
      @donaldlyons17 Рік тому +2

      sounds about right but to make 1 million cash etc. is the issue

  • @savagecub
    @savagecub 7 місяців тому

    Do I use the trailing dividend yield ?

  • @stopsleepingstarteating
    @stopsleepingstarteating Рік тому +7

    Thank you for this📈