If you want to make 50 a month in dividends using the robinhood app then i am going to show you
exactly how to do the math side of things on my phone in just a minute here but i want to make it
clear that this is just for entertainment purposes only this is not investing advice because i'm just
trying to illustrate the math side of things so that you know what it takes to actually make fifty
dollars a month because it's not like you can just put a hundred dollars into the stock market
and expect to make that much money passively every single month it is going to take work on your end
and it is going to take money to even make 50 a month but i just want to show you guys how
to do this on your end and i also want to make it clear that dividends are never guaranteed
because even if you find a company that's paid out dividends over the last 50 years it doesn't mean
that they're going to continue paying them over the next 50 years now there are ways to look at
some information and find out if there's less risk with the company ditching their dividend
but there's still never any guarantee that it's going to continue moving forward or even go up
in the future now let's just hop on my phone and i'll show you exactly how to do the math yourself
okay so once you're inside the robinhood app just click the search icon on the bottom here because
we are going to search for a specific company that does pay out a dividend and like i said this is
just for entertainment purposes only so you can search for any company that pays out a dividend
and i'm just going to show you how to do the math here but in this case we are going to look up
pepsi their ticker symbol is pep so just type that in p p-e-p once we find pepsico just click on them
current shares are 162.79 obviously that's moving because the market's open right now it looks like
they're healthily moving in an upward trend but this is from a very shallow perspective
and they're also paying out a pretty good dividend and they have a good dividend history as well so
let's just pretend that we're going with pepsi here you're going to scroll down until you get
into the stats and right here on the bottom right you're going to see div yield this is 2.57
that means it's 2.57 percent of the current share price as to what you're being paid
out in dividends every single year so in order to do the math here it's very easy
because if you want to make fifty dollars a month investing in pepsi then it's very easy by just
plugging in the dividend yield information but we are going to need to open up our calculator here
now with the calculator if you want fifty dollars a month you are going to have to multiply that by
12 so that you get a yearly number 50 times 12 is 600 so we're just going to put in 600 here
and then we are going to have to divide that by the dividend yield that's current right now and
we just saw that it was 2.57 so in a calculator you're going to have to divide it by .0257 and
that is going to tell us how much money we're going to need invested in order to make 50 a month
so equal here looks like 23 346 bucks that's how much we're going to need invested today in pepsi
in order to make 50 a month in dividends now if you want to know how many shares you need to buy
all we have to do is find out the current share price so let's go back into robinhood
and scroll back to the top looks like 162 let's just do 163. so 163
we're going to divide this divide by 163 and boom you're gonna have to buy 143 shares
at that current price to make 50 a month in dividends so if you start small and you just
buy 10 shares here 10 shares there eventually you are going to get to that point of making 50
a month but it's never going to be totally accurate because a the dividend can always
change and b the stock price is always changing so hopefully over time the dividend payout does go
up because that means you're making more per share and you're also hoping that the company's value of
shares is also going up as well because obviously you don't want to just invest in a company only
to have the stock price go down over time even if you're getting paid out a pretty good dividend now
i do want to make a point here that the dividend yield on robinhood isn't always 100 accurate
because it looks like they're using trailing dividend information meaning they might be
pulling the last 12 months of dividend payouts and obviously if the company has upped their dividend
then that percentage would be higher or if they've lowered it then the percentage would be lower
so the way that i can check this is i actually get on the yahoo finance app so let's go over
there really quick and i'll show you what i do search for the same company inside yahoo finance
so we're going to look up pepsi p-e-p find them here and then what we're going to do is we're
just going to scroll down until we see show all key statistics we're going to go right into here
and then we are going to scroll down until we get into the dividend information
and then right here inside the dividends you can see trailing annual dividend is 2.57 so that looks
like that's the information that robin hood's pulling but if you look at the forward annual
dividend you can see that it's 2.63 so it's actually a little bit higher because pepsi
happens to be paying out more this year than they were last year which a lot of companies do that
because obviously with inflation the dividend does tend to go up so you might want to pay attention
to this information especially for certain companies that maybe have pulled their dividend
like for instance if you look up ford ford is just f now if you look up forward right inside here
we go inside show all key statistics and then we scroll down into the dividend information
and you can see here that the trailing annual dividend is actually zero percent
and the forward is actually two percent because now they are paying out a dividend
whereas over the last year and a half they haven't been paying out a dividend so if you just look
them up on robin hood this could really confuse you let's go back to robinhood and i'll show you
okay so now let's just look up ford inside robinhood just f once again ford okay so we now
know that they are paying out a dividend currently but they weren't over the last year and a half
so let's scroll down here into the statistics and you can see here dividend yield is nothing
but they are paying out a dividend so because of that trailing information it could confuse you
so just double check that information from another source and find out what's really going on now if
you are new to the robinhood app you can get a free stock just for signing up with them it's
going to be valued from about 2.50 all the way to 225 bucks so just for signing up with them you can
get a free share i have an affiliate link for them in the description below if you have any interest
but thank you for watching this video hopefully you guys learned how to do the math yourself
to make 50 bucks a month because it's really not that hard but it's obvious
that you are going to have to invest quite a bit of money in order to even make 50 bucks a month