If you’re looking to earn $1,000 a month in dividends with just four stocks, you’ll need to do some calculations to determine how much you need to invest in each stock. Dividends are payments made by companies to their shareholders, typically on a quarterly basis. To earn $1,000 a month in dividends, you’ll need to earn $12,000 a year.
Let’s say Stock A pays a dividend of $2 per share annually, Stock B pays $1.50 per share annually, Stock C pays $3 per share annually, and Stock D pays $2.50 per share annually. To earn $12,000 a year in dividends, you’ll need to calculate how many shares of each stock you need to own.
If Stock A pays $2 per share annually, you’ll need to own 6,000 shares to earn $12,000 a year in dividends. For Stock B, with a dividend of $1.50 per share annually, you’ll need to own 8,000 shares. Stock C, with a $3 dividend per share annually, will require you to own 4,000 shares. And for Stock D, with a $2.50 dividend per share annually, you’ll need to own 4,800 shares.
In total, you’ll need to own 22,800 shares of these four stocks to earn $12,000 a year in dividends, or $1,000 a month. Keep in mind that stock prices and dividend payouts can fluctuate, so it’s important to do thorough research and consider diversifying your investments to minimize risk.