A dividend yield tells you how much dividend income you receive in relation to the price of the stock. Buying stocks with a high dividend yield can provide a good source of income.
not all Companies pay dividends. The vast majority of dividends are paid four times a year on a quarterly basis, but some companies pay their dividends semi-annually (twice a year), annually (once a year), monthly.
It is possible to own many dividend companies in your Portfolio and receive dividends monthly. This is called dividend imvesting or Income investing.
The more shares you own of high-quality dividend stocks, the more money you can make.
Dividend investors collect this specific type of investment over time. ... It would be possible to earn a substantial amount of money each year from dividends alone over 30, 40, 50 years or longer.
Lets say your dividend stock Portfolio (with 10 to 30 or more dividend paying stocks) has a 3.5% dividend yield. And the total amount invested is $100,000 in 20years.. You will receive atleast $3,500 paid as dividend annually, i.e $291monthly.
If you reinvest these dividends monthly you can further compound the growth of your Portfolio and earn a monthly income that can take care of your monthly expenses.
Lets say your average monthly expenses is $2000, & your annual income is $24,000. For you to live off your dividend income you will have to accumulate ($24,000*25)= $600,000 in Dividend stocks. This can be achieved by monthly investments and living below your means!
You can start small with little investment on a monthly basis and build a huge dividend Portfolio within 10 to 20years.
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This means that you will receive annual dividend worth $24,000 ($600,000 × 4% dividend yield) which is enough to cater for your monthly expenses
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