What if you could make an additional income of $1,000 per month, through dividends alone? What would the size of your investment portfolio need to be?

If you need $1,000 in #dividends per month, then that equates to $12,000 per year. Divide by 0.05 (which is the 5% dividend yield we hope to get from investing in respectable stocks). You would need an investment portfolio of around $240,000 in high dividend yield stocks, in order to generate the $1,000 dividend income per month.

But where do you find stable and reliable #stocks with that kind of dividend yield? Traditionally, companies in the oil, real estate and telecom sectors have paid large dividends, but be careful not to get suckered into a dividend trap. A dividend trap occurs when investors are lured in by a high dividend yield, only to find the underlying company was not such a great buy after all.

Philip de Vroe (The Finance Storyteller) aims to make accounting, finance and investing enjoyable and easier to understand. Learn the business and accounting vocabulary to join the conversation with your CEO at your company. Understand how financial statements work in order to make better investing decisions. Philip delivers finance training in various formats: YouTube videos, livestreams, classroom sessions, and webinars. Connect with me through Linked In!

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