Living off dividends and financial freedom from dividend investing is such a huge accomplishment. Here is the math to learn how you can live off of dividends and have passive income fund your early retirement. Best dividend stocks for passive income have great dividend yields!
#passiveincome #dividendstocks
*not financial advice
source
Covered calls are better on growth stocks
Too much work. I'd rather just live off Interests
cool
This year, I already started investing in dividends with my taxable account. I used the buy and hold strategy in my Roth, adding some Berkshire B stock, SCHD, and an S&P 500 and total market exchange-traded fund.
XDTE,QDTE,RDTE,YMAX,CONY,PDI.
Your math is needlessly complicated for what you are calculating. Just divide your dividend income goal by the fund's dividend yield to calculate how much you need to invest into each fund….there is no need to involve the price of the stock/fund.
The trap is looking at yield and thinking you need less money with a higher yielding asset. NAV erosion is real and choosing a quality asset is always better than a higher yielding one.
Yea I got 250k in my back pocket. To get rich off stocks you need money to make money.
One thing to consider is if a company is paying out big dividends it means they aren’t spending their cash wisely so the stock price won’t grow as fast as a lower dividend paying company
Just have 3 million. Thanks tips!
Dividends are kinda useless for Europeans with the taxation on them
500k in a decent yield max etf would pay a monthly dividend of 25k.
How does the taxes work for the drip method and withdrawals
Lmfao dam u need money to make money
I plan on making a million or so with crypto then buy a whole BTC and put the rest into the index. Passive income with tradfi is never a bad option with BTC as a reserve on a cold wallet.
I just need a cool 3 mil and I’m good
Very nice
Hey man. Don't do it that way. Just take the living expense and divide by the dividend yield. This gives you the value of stock you need to own. Divide this by the stock price for the necessary number of shares.
If you retire at 65 and you want your money to last at least 30 years using the 4% rule, you'll need 2.5 million to live comfortably. Not rich but comfortably.
That stock only plays 2x /yr rio tinto not one I would pick
Dividends from SCHD are generally taxed at the qualified dividend rate, often providing a tax advantage over ordinary income rates for many investors. However, current market attention is centered on Nvidia, which has significantly contributed to the S&P 500’s recent earnings growth. Nvidia’s stock, up over 90% year-to-date, gained another 2.5% on Monday in New York, propelling the Nasdaq 100 to a new record high. I’m actively seeking new opportunities to enhance performance within my $350K portfolio and open to strategic ideas.
Such a dumb goal. No meaningful difference between share price appreciation and dividends. Hence, the person you spoke of really wants to live off their investment income. However, then we must understand that the investment rate return is not the same as the sustainable rate of withdrawal from a portfolio. Then you’ve forgotten taxes. So basically the logic here is flawed on a many levels. Pretty worthless unless you’re just doing an algebra lesson.