How to Make Monthly Income with Stocks that Pay Dividends
Everybody would like to make some passive income, and what is more passive than collecting dividends on stock that you own. Most stocks pay dividends quarterly. Is there a way to collect those dividend checks monthly? You bet there is. Just follow this guide and you could be on your way to monthly passive income through dividend paying stocks.
Other People Are Reading
Instructions
-
-
1
Figure out how much monthly passive income you would like. Let's assume it is $1,000. Many solid companies in the S&P 500, like Pepsi, are paying dividends in the range of 3 percent yield or higher.
-
2
Figure out how much stock is required to generate your $1,000. This works out to $12,000 per year, which is 3 percent of $400,000. So, you will need $400,000 in stock to receive an annual income of $12,000 from dividends.
-
-
3
Divide that amount of money into amounts that you can invest to reach your goal so that you may use the example given to receive passive income. Begin looking for several different stocks that you would like to own.
-
4
Go to Yahoo! Finance and type in the symbol of stock in the "Quotes" box and click to get the quote. Then go to the interactive charts and set the chart for two years along with turning on the events tab to show dividends. The chart should show when the dividends happen and for how much.
-
5
Pick stable companies with a history of consistent dividends. Find stocks that pay dividends in each month of the year. If all your stocks pay about the same percentage yield, you can purchase equal amounts. If not, you will have to adjust accordingly.
-
1
Tips & Warnings
Many stocks pay dividends quarterly about three months apart. When you find one that pays in January, you can expect it will likely pay again in April, July and October. Then find a stock that pays in February. You can make a chart to fill out while marking in each month.
Don't go for the stock with the highest dividend yield since that means the stock price is probably falling. Stock prices often fall for a reason, especially if the business is failing.
