welcome back to another video today we're talking about how you can earn a passive income that can
allow you to live purely off of dividends i just got to say for a second why did we
not learn about this in high school seriously we should have had our teachers come into the class
bang on the desk and say hey you guys need to listen up because today what we're going to talk
about is how you can actually earn a dividend income by starting your investments today
that someday you could either not have to work retire early or have a nice side income
thanks to dividend income where were they on that no no no instead we were learning about
pythagorean's theorem i don't even remember how to say that right that's how much that stuck with
me pythagorean pythagorean anybody remember that so if you're ready to make some dividend income
don't be greedy tap that like button down below this actually helps youtube push this video out
to more people so they can learn things that they should have learned in high school so whether you
want to retire early such as the fire movement where you want to retire at the age of 30 or 40
or something like that or you just want to have an extra set of income which is always nice to have
or you want to have that power and that ability to some day just quit your job
and live specifically off of dividends whichever your goal is we're going to break it all down
today now before we get started we gotta have some assumptions on this so i'm gonna talk about
sixty thousand dollars as my benchmark that is the example i'm gonna share with you today
and running some formulas and some calculations that you can take advantage of immediately
but there's going to be something that you need to do right now a very quick thought
what is your monthly expenses that's the very first thing you need to think about when you
look long into the future or even short into the future how much money could you live off of per
year to feel comfortable and feel satisfied with your life for some people who are living off of 10
coffees maybe only 30 000 a year for some people that want to have a bigger house maybe live on a
cruise boat like you know your boy would totally live on a cruise boat or you have a big family
you want to watch after maybe you need a hundred thousand dollars a year but for today's example
i'm gonna meet both of those figures right in the middle right around sixty thousand dollars a year
but that's the first thing and that's the first assumption that you need to think of so now with
that out of the way it's time to talk about what we actually invest in to start generating this
dividend income very first thing you need to do if you're not already investing is get started today
link down below get yourself free stocks simply just for signing up with weeble and sometimes on
the promotion it can be one stock or all the way up to four stocks so you gotta check that out and
get started today and then you can take that 100 and start doing your own research to try to figure
out what best dividend income you can start with with that first 100 investment there's a couple
things you can do you can do an etf exchange traded fund or you can do an individual stock
i like to do a variety i like to spread out my money because i don't want to put all of my eggs
into one basket and that means either an etf a stock whatever it is i spread out that wealth
in fact i use multiple brokerages not just weeble i also use robinhood and the reason i do that is
because i want to spread out where my money is just for safety why not i'm going to do just to
make this a very simple explanation is just focus on one particular etf at a time and again i don't
recommend putting all your eggs into one basket but one etf is what we're gonna focus on first
thing i'm gonna do i'm gonna slide on over here and i'm gonna pop up my screen right over here
so you can walk along with me with my weeble portfolio so the very first thing i wanna show
you guys is this one right here this is sphd this is a an etf that focuses a lot on the s p 500 and
typically those companies that tend to pay a nice dividend the cool thing about this one is this
actually pays out monthly some etf some dividends pay out quarterly and yearly but this one is a
monthly paying dividend so what we want to do besides just looking at the quotes and seeing
how things are going here you can see obviously right now it's trading for 39.72 but what we need
to understand is a very simple formula to know if i want to make sixty thousand dollars a year how
much money would i have to put into this one in order to generate that sixty thousand dollars in
dividends let alone the growth the growth is a whole different exciting cherry on the top so
to speak so here's how you do it hop on over to google and then on google you're going to want to
type in the ticker symbol so we know this is it s phd so i'm going to type in s p h d and i'm going
to type in dividend yield and that's the number we need to get that is a percentage right there it is
right at the top you don't even have to click on anything man google you are kicking button
taking names four point six one percent then take that number that four point six one percent
and hop on over to your trusty calculator so on your calculator you're going to take 60 000 or
whatever yearly income you want to make and then divide that by that dividend yield percentage and
the example here it's 4.61 so we would go 0.0461 to make it a percentage and a decimal point and
we're going to hit equals 1.3 million dollars now before you hop off the video hit the dislike
and you run away no no wait wait wait wait wait wait there's more to this video there's more to
this but if you wanted to make sixty thousand dollars just on sphd you would have to invest
1.3 million dollars i'm going to share with you another calculator that's going to blow your mind
especially if you're still in school especially if you're young you're going to want to get
started today just hang with me for a second but i actually want to share with you another example
now this one is an individual stock and this is over on my robinhood account here and this is agnc
that's the ticker symbol for this and this is basically a real estate investment trust again
this is a single stock this is not an etf at all but right now it's going for 16.48 let's do our
typical little research that we just did this time we're going to type in a g and c dividend yield
right there it is boom 8.94 so now let's take it again if you go back to your calculator you do the
same formula 60 000 a year divided by that 8.94 so 0.0894 that would equal 671 000. so once you
get to that point a gnc could start producing you 60 000 a year and that's again why i like to also
spread out my wealth not only because you know obviously this is obviously a little bit quicker
to get to that 60 000 but also because you want to make sure that there could be fluctuations in
the dividend yield every single year and it's very important to make sure you spread out your wealth
so you're not just riding and dying based on one particular investment now again you might be
saying to yourself wait a minute this still this is it's way too much money 600 000 1.2 million
come on i don't even have that either it's okay here's where i am going to show you a very cool
calculator and in this calculator you're going to probably want to jump off this video and just
start investing right away so click that weeble link down below because this one is important to
think about by the way none of this is sponsored so this is just free value for all these people
that i'm shouting out to but i'm going to include the link down below in the description to this
amazing investment calculator popping up over here smart asset let's say your starting amount is 1
000 okay and then you decide a way to make income now i have a lot of videos on this channel about
how you can make a side hustle income and i think it's important to think about to yourself how do i
get to a point where i can invest maybe a hundred dollars a month or 500 a month or even if you can
start out with a thousand dollars and then try to invest a thousand dollars a month if you can
build up your income reduce your expenses and be able to put in a thousand dollars a month
especially if you're young and you don't have a lot of overhead check this out
we're gonna assume a thousand dollars a month and i'm gonna put in a rate of return of ten percent
because that is actually the average growth of the s p 500 so why not juice just use the average
of 10 okay so the 10 years to grow we're going to say it's 20 because we are 20 years old
and at 40 years old we're going to have 766 000 now of course if you would invest that
in something like agnc or something that pays a typically high dividend yield boom you're at your
60 000 a year but what i want to share with you in this particular calculator is this cool graph
right here so right now it's 20 21. so now we're at 2031 and look at the total interest earned
based on the growth it's now at 108 851 dollars so basically it took you 10 years of putting 1 000 in
every single month to earn a hundred thousand dollars in interest in growth but here's where
it gets really cool here's the power of compound interest and why you need to get started today
if we scroll over here now we're up here only four years later and now we have 237 000. so it
takes you 10 years to earn your first 100 000 and then only four years to earn the second 100 000
that is the power of compound interest get started today and what's cool about this calculator of
course it breaks it down below here and you can type in whatever number you're comfortable with
and of course as you scale up as you start reducing your expenses as you start making
more income you can start throwing more money into your dividend paying investments so if that wasn't
badass enough if you're not already clicking over you're checking it out you're getting
started with your dividend investments next thing i want to show you that i think is also important
i'm going to pop up my ipad screen here because this is a great way to track your dividends and
it's absolutely free very simple and easy to remember website called trackyourdividens.com
sign up for a free account and then you can look down below here i've already started inputting two
of the etfs that i own that pay a dividend s p h d and k b w y right there they are and so what i
want to do is i want to walk you through this the very first thing i'm going to do is i'm going to
hop back in fact i'm going to pull up my robinhood account for this one we're going to put in agnc as
i shared with you a little bit earlier okay so i'm going to hit new holding right here on track
your dividends.com new holding enter the ticker symbol and i just said what it was so it's agmc
enter number of shares now you can find this within your robinhood account so
if i'm going to click on there there's my agmc investment total of 10 shares okay so 10 shares
and then the cost per share is your average cost per share you can find that right there
down below so my cost per share here is 15 and 86 cents i'm going to hit add and then boom it is
going to add now here we go you have that in there there it is agmc 10 shares all that stuff is good
it actually tells you what your profit and loss is based on the growth of that particular investment
but most importantly up here check it out it's showing you what your estimated annual income
from your dividends is and you can continue to track this over the long period of time thanks
to this website so right now i'm at 178 a year out of my goal of 60 000 a year i got some work to do
but that keeps me on game that keeps me on point guys so i can get excited about it and keep trying
to grow my investments let me add one more this time i'm gonna give weeble an example so that way
as you look through your weibo account you'll know exactly what to add in so i am going to choose a
single stock for this one and it's going to be o realty income and so i'm going to go back here to
trackmydividens.com or attract your dividends.com hit new holding and this ticker symbol is oh the
number of shares located right here on weeble is 25 so 25 shares and then the cost per share
located right here at 61. i'm just going to round this up 61.78 okay i'm going to hit add boom now
i'm up to 248 guys so i got to obviously add the rest of my portfolio into this so i can continue
to see what is my dividend growth and if you're interested in seeing how i'm progressing i'm going
to start a whole new series on it so make sure you subscribe to this channel so you can follow along
with me again none of this is financial advice you got to make your own decisions you got to make
what works best for you but hit that subscribe button click the bell so you don't miss out on
the next personal finance video if you enjoyed this tap the like here's some other videos that
you might find interesting and until next time have an awesome day and we'll see you next time