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Make $1,000 Per Month in Dividend Income - How Much You Need Invested



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so today we're gonna be looking over how

much it's gonna actually take for you to

make eight thousand dollars plus a month

in dividends now for me personally I am

a huge fan of dividends

I love focusing on them in Garlin them

in my portfolio mainly with m1 finance

that's kind of the platform I personally

use so I kind of got to me a little bit

because I talked to people all the time

when it comes to what my goals are for

my investing portfolio and that is to

get over eight thousand dollars in

dividend income whether I want to use

that money whether I want to reinvest

that money whatever the case may be I

want to be able to earn that in income

so I get a lot of people that ask me

well how much do I actually need to be

invested in so I can make that kind of

money now there's a lot of different

factors I go into play but what I

decided to do was just go ahead and show

you this so if you've asked this

question maybe I linked it up for you or

maybe you know you just found this by

chance because you're interested in this

kind of question let's go ahead and jump

onto the computer so I can kind of give

you some ideas of what it can take for

you to be able to earn an income with

over $1,000 a month from just dividends

now we're here on the website called

market beat.com

slash dividends slash calculator I'll

have it in the description box for you

guys if you want to go ahead and check

it out I'll also have my m1 finance link

down below if you guys want to check out

that investing app but what this is

gonna be doing for us as far as this

calculator goes it gives us a lot of

options here so we can click portfolio

or individual stock we can click on the

or we can input the principal amount

input the annual dividend yield

whether it's taxable or not the annual

contributions the expected annual

dividend increase the how often I'm

getting distributed will switch that to

monthly then our dividend tax rate and

then our expected annual share price

appreciation which is the you know the

actual value of the stock itself and

then how many years we're reinvesting

and then if there is a trip program

which in case you're new that means

dividend reinvestment program

it's where companies will take the money

you got from dividends and just

automatically reinvest them into your

portfolio some of them do it back to the

companies that paid those dividends

others actually reinvest it back into

the overall portfolio but either way

it's a very powerful tool because it

allows your money to really get back

into the account and really start

working even more for you which is

obviously

pounding and that's very beneficial and

I'm gonna show you guys here exactly

what some of that really can do for you

now what I'm gonna do first is I'm gonna

show you a little bit of compounding

interest beforehand but when we go ahead

and show you how much it's gonna take to

make over a thousand dollars a month so

my current portfolio is sitting at about

$4,300 for my taxable account I have

more in my retirement but we're gonna

focus in on the taxable because I want

to get this money to $1,000 as quickly

as possible but first we're gonna do is

a quick calculation and I'm gonna show

you how impactful if if I didn't do

anything more than just have the $4,300

sitting in my account so as of right now

so as of right now in year 1 I'm earning

about a hundred and fifty two dollars

and ninety four cents in dividends which

is actually pretty on par with what I'm

expecting to earn for this year now if

we go through and kind of start

calculating everything else you can see

here that if I have that money

reinvested with no additional

contributions at the following the year

I'm expected to get a little bit more

but not just because the dividends got

reinvested but also because the dividend

increase has happened as well too and

that's where you see the yield on cost

so a lot of companies will raise their

dividends on a yearly basis some of them

try to keep it on for a very consistent

amount of time 25 50 years if they can

because they get put on these really

great lists where people are excited to

invest in them as dividend investors and

they're called dividend aristocrats if

you hit over 25 years of consecutive

increases and a dividend King if you're

increasing your dividends for over 50

years plus so with those companies

increasing their dividend yield but yet

you're not either reinvesting any money

into the company you're still having

ownership of those shares your actual

value will continue to go up as far as

how much you're getting paid out so if

you have one dividend and the yield was

3% but then next year they actually

raised the dividend yield by a certain

percentage you still get those

additional payouts without doing any

extra work and that's a beautiful thing

and one of my favorite things when it

comes to dividend investing that not a

lot of people talk about so I'm gonna

show you exactly what I mean by that so

you can see here that again in the first

year I'm earning about a hundred and

fifty two dollars and ninety four cents

now because that money is getting

reinvested into the program plus these

companies are increasing their dividend

yields by the twenty year marker

without doing pretty much anything else

I'm pretty much gonna be earning about

one thousand one hundred seventy-five

dollars and twelve cents annually from

dividends now in a 20-year time period

that is not really a lot of increase of

course because we're not really

contributing additional money into the

account but from doing nothing else and

just letting the money reinvest itself

and then the dividends getting increased

every single year that's a huge amount

of money that you're gonna be earning

per year which is almost effectively a

hundred dollars every single month for

doing nothing so you would actually

almost be twelve times in your money in

the span of twenty years for just having

about four thousand three hundred

dollars having a three point five

dividend yield and increasing the

dividend on average by three percent so

that is pretty powerful stuff now one

big thing when it comes to being a

dividend investor is the fact that you

know you want this money to be able to

be there for you and your family down

the road to be able to cover expenses

but if something were to happen to you

in that middle of the journey you know

it could be really hard for the family

maybe you don't have all that money you

would like there to be for them to be

protected and cover expenses so having

term life insurance is honestly a really

powerful way to protect you and your

family and then making sure that they're

taken care of in case something happens

to you I'm gonna have a link in the show

notes you guys should definitely check

it out if you don't already have any

term life insurance to see what the

rates are to have your family covered if

something happens to you and you know

essentially have money to cover expenses

now and hopefully in the future as well

too but now let's go ahead and see what

it would actually be like to actually

get over a thousand dollars a month

which is about twelve thousand dollars

every single year on average so we're

just gonna look into the starting

principal and try to figure out this

number here based off of our annual

dividend you now your dividend yield on

your portfolio might be higher might be

lower so this number is just dictated

based off with the annual dividend that

this portfolio is going to generate you

can go on to this website I'm gonna have

in the link in the show notes if you

want to plug in your information so you

can see all the different stats and what

actually will work for you and how much

you'll actually need to be able to hit

that $1,000 now let's go ahead and start

off with $400,000 into this portfolio

and calculate this dividend so jumps all

around there so we are actually more

than enough right over here at $400,000

and we would be earning on average

fourteen thousand two hundred and

twenty-six dollars in annual dividends

so every single month you would actually

be earning more than that so technically

speaking we can actually probably drop

this down let's see here it's a three

hundred and fifty thousand let's see

where that brings us perfect so 350

thousand gets us even closer down to the

actual one thousand dollars a month

because annually this brings in about

twelve thousand four hundred and forty

eight dollars in a forty three cents and

then one thing to really keep in mind to

you is even if your overall portfolio is

at eighty like three point five yield

you know certain stocks might have

higher or lower dividend yields so those

are a lot of factors you gotta keep in

mind as well too but imagine just having

an income of over a thousand dollars a

month because you've invested overtime

now obviously you could put all that

money in at once fantastic but you know

for most of us it's going to be a

gradual increase as far as our overall

you know account what we can put into it

and having reinvested into the overall

account so that way it can grow to this

annual dividend so if I go back to my

example of forty-three hundred dollars

in my portfolio I believe for me I would

need about twenty five thousand dollars

a year with my current rates if I'm not

mistaken to be able to earn that money

in about watch made less than ten years

so for me my goal is to hopefully get to

a thousand dollars a month within about

ten maybe fifteen years of time so for

me if I was able to do twenty five

thousand dollars a year in contributions

to my portfolio I would be able to get

to that and roughly about looks like

nine years so in nine years if I

continue to put twenty five thousand

which I can't do right now that would

equal out to a thousand dollars every

single month which is pretty awesome and

for me like I said whether I want to

continue to reinvest those dividends I

could or I can take that money and use

it for other means because it'll just be

another income source for me but if I

didn't do anything with it and I kept up

the amount of contributions and the

dividends and another ten years on top

of that I would be earning sixty eight

thousand nine hundred and twenty three

dollars every single year in dividends

that is pretty nuts so that's five

thousand seven hundred and forty three

dollars a month on average if I just

continue to invest twenty five thousand

a year

reinvested dividends you know have my

year long cost continued to go up that

is honestly pretty crazy to really think

about to make that much money from

dividends that would equal out to about

a million dollars in the portfolio but

that would be interesting because if you

put a million dollars into a dividend

investing portfolio at three and a half

percent yield I don't believe it's gonna

echo out that same amount of money

because you're not also increasing the

yield on cost those companies are

increasing their dividends over time as

well so again there's a lot of factors

into it where you're starting from how

much you're putting in every month your

dividend yield there's so many little

things that are gonna go along with it

but if you stick with it or you know

working really hard putting as much as

you can without obviously affecting

other parts of your life you know you

can get to a point where you're making a

thousand plus dollars every single month

from just dividends now I want you to

keep on learning more when it comes to

dividend investing so check out my video

or right over here thank you so much for

watching and I'll see you in that next

video