Dividend Growth Forum

let's assume I invest in stocks with 2.0 to 5.5 dividend/ yield only (none of these crazy 11 + div/yield,stocks).

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$60K will get you a $100 a month at 2%. $30K at 4% etc.

50 000
*   .03
-------
1 500


This is a really good question, because, I think anyone interested in dividend producing stocks starts off with this in their mind, for the most part. It's a good rule of thumb not to chase high yielding stocks; however, that doesn't mean something falling into a lower to much lower yield percentage is an automatic buy. I remember my first divi-producing stocks, Exxon and Paychex, when I received "x" amount of dollars in my account I was like, "What? Where did this come from? This is crazy!" lol...Needless to say, I did not understand anything about investing or how it worked, I was that green.


But to take your yield 2% to 5.5% with an average mean of 3.75%

32k would get you 1200 per year

Become friends with IRV

Income (Dividends paid)
Rate (Dividend yield)
Value (Portfolio Value)

I/R=V $1,200/.035=34,286
I/V=R $1,200/34,286 = .035
V*R=I $ 34,286* .035= 1,200

And to make an easy calculation a lot more complicated:
don't forget about taxes :p

(04-11-2019, 06:31 AM)crimsonghost747 Wrote: [ -> ]And to make an easy calculation a lot more complicated:
don't forget about taxes :p

I didn't even think about taxes!!


I try to keep income producing investments in retirement accounts.

(04-14-2019, 07:58 AM)rayray Wrote: [ -> ]

(04-11-2019, 06:31 AM)crimsonghost747 Wrote: [ -> ]And to make an easy calculation a lot more complicated:
don't forget about taxes :p

I didn't even think about taxes!!


I try to keep income producing investments in retirement accounts.

That's the only way it can work IMO.  I'm not trying to pay taxes on a 2% yield.  It really takes the fun out of it.