100 200 300 400 500 600 700 800 900 5 000
in dividends based on stocks that you purchase you know every time you buy a dividend stock you give
yourself a raise buy a share get more dividend payments buy a share get more dividend payments
the best part about dividends all you have to do is you put your money into a stock or an etf
and you get paid simply for earning that stock or etf you don't have to go to work you don't have
to clock in you sit back you relax and you let the money do the work for you today i'm gonna explain
exactly how you can earn five thousand dollars in dividend payments and how you can actually
grow it to someday replace your full-time income if done the right way you ready to get started
then don't be dumb tap that thumb down below let's get right to it now i did a video about a year ago
and a year ago this right here this screenshot that you're looking at shows my annual income
of 521 dollars so basically that's 521 of dividend payments that i received from the stocks and etfs
that i owned now really quick if you're not sure what a dividend is a dividend from the standpoint
of a stock is the company's share of profit that they earn distributed to their shareholders and
that is a really cool thing they're basically giving you a share of their profits hey
we did well take some money from us in the form of a dividend payout that's the beauty of dividends
now the one key point though is you want to make sure that the company is actually making profit
and paying you the dividend out of their profit and not actually dipping into their
cash reserves and going into debt in order to just fulfill a promise to you to build a dividend so
521 dollars in annual income and what i'm at today 5048.27 of annual income and that is why i say
in this title how to make five thousand dollars with dividends now you can do that annually
you can do that monthly i'm going to share with you both examples i will say not every day can
you sit here and say that last year you got a 50 raise or more because i got well above a 50
raise i got a ton more i went from making 500 a year to making 5 000 a year simply for investing
my money how much you grow in your dividends all depends on how serious you get with the plan to
reduce how much you're spending to reduce your debt so you can invest more and increase your
income so maybe someday you don't have to work at all that's the whole beauty so the first thing we
want to do is we want to take a step back and say what is the goal now for my goal i would love to
make twelve thousand dollars a year that'd be one thousand dollars every single month of somebody
coming up and dropping one thousand dollars into my account in dividend payouts simply for
earning a share of a stock so let's start there to get to one thousand dollars so right here on
the dividend tracker on the left-hand side you can see it says calculators i'm going to click on that
and then let's say our annual income goal is to make 12 000 now this is where it gets tricky
what is tricky about it is you got to determine what's my favorite company that i want to buy into
now i'll give a few examples but these are not financial advice to you to buy hold or sell
any type of investment security always do your own research but let's say for example i want to buy
into apple aapl now this is a pretty bad example because apple does have a very low dividend
payout ratio which i'll share with you in just a second but if i select apple when i hit calculate
what this will let me know is that in order to generate twelve thousand dollars a year from apple
i would have to invest two million dollars or fourteen thousand one hundred and seventeen shares
obviously that's ridiculous and don't click off the video yet because you're probably like
okay dude really you're asking me in order to make twelve thousand dollars a year go find
yourself two million dollars what kind of stupid dumb thing is that no no i get it that is a really
insane thing but keep in mind that the dividend yield right here is only 0.61 percent which is a
very very low dividend yield but let's talk about another one this is a real estate investment trust
known as the realty income corporation so with realty income if i recalculate this look at that
dividend yield of 4.27 percent what a big difference but look all you would have to do
is invest 285 000 into oh for example to generate 12 000 a year or 1 000 a month now let's take a
step back from that we're going to use this as an example 285 752 dollars i'm just going to
copy this piece right here and then we're going to hop over to nerd wallet right here we are on
nerdwallet.com on their savings goal calculator so in order to build up to 285 000 that we need
in order to generate our income in that particular fund i'm going to place that right here 285 752
we're starting with nothing and how long do you want to grow to that goal this is where
you got to decide okay 10 years does that feel like a long time does it have to be five years
do you got plenty of time if you're like 20 years old you got plenty of time 20 years let's say
five because i know we're all pretty impatient i'm gonna come down here and assume that we're
gonna grow at a rate of seven percent annually and that's basically the growth of the stock
market so we're gonna leave that at seven percent hit calculate and that means i need to find a way
to make three thousand nine hundred ninety one dollars per month into realty investment corp
oh for example and that would get me in five years to two hundred and eighty five thousand now if
you're looking at that you're like that's absurd couple things first change your mindset find a
way to make three thousand nine hundred ninety one dollars find a way to cut back on your bills
to get three thousand nine hundred ninety one dollars trust me i used to think all the time
there's no way i can find that much money i don't even make that much money but then
i started saying how can i make 3991 dollars and then through side hustles and other things i found
a way to do that but if you're still kind of like that's a little too much you can always adjust
the time to grow let's say it's 10 years then all you got to do is find 1650 a month again if it
sounds like a lot i challenge you to change your mindset and figure out a way to invest this money
because guess what at the end of the day it's going to give you a benefit it's going to pay you
and remember one important thing when it comes down to investing you can do something called
the dividend reinvestment program so to make this super simple for you if we come over here because
if you're a beginner this might sound like a lot but let's just focus right here on oh
if i would select in the brokerage that i'm buying the stock from so whether that's charles schwab
fidelity robinhood weeble whatever you're buying the stock in
and i invest my sixteen hundred dollars a month or three thousand nine hundred dollars a month
into oh i am gonna select that i want to reinvest the dividends that oh pays me so if the annual
income per share is two dollars and 83 cents and i buy one share that's it just one share 67 a share
that means every year i'm gonna have an additional two dollars and 83 cents reinvested back into my
holdings of this share so if you have two dollars and 83 cents an annual income for your one share
that means every year that money will be reinvested into your holdings that basically
means for every year that you continue to invest you get some free money reinvested
to add and compound more money for you in the long term so let's say you have five shares
10 shares 20 shares 100 shares of o that means if you reinvest the dividends you're gonna constantly
get more money to get you more shares to get you more dividends it becomes a an incredible
beautiful sexy snowball i mean i don't know if anybody's ever said sexy snowball before but
seriously when you understand how exciting this could be oh you're going to find a way to put all
the money into this by the way really quick plug for the dividend tracker this is where i track
all my dividends they have the ability to track your portfolios for you automatically that's what
you see up here where it says robinhood and stash anytime i buy stocks within those two portfolios
dividend tracker automatically updates for me so i can always see what my annual income is that's
how i know i make five thousand dollars a year you can also do this manually if you want to as
well they have both a free version as well as a paid version on the dividend tracker and i'll
include a link to it down in the description below so you can take advantage of that today
now you can also play around with additional things let's say instead of just realty income
we want to buy i don't know maybe a share of let's see abbvv that's another good one
we're gonna buy that one as well we're gonna calculate now what you would need in order to make
the twelve thousand dollars every single year you need about a hundred and forty two thousand into
o and 169 000 into abbv abbv only has a dividend yield of 3.76 but that is still pretty darn good
now adjust this however you want and add whatever ticker symbols you want into this thing
what you need to do is step number one is figure out how much money do i want to make
if you want to be aggressive and say i want to make let's say a hundred thousand dollars a year
that's where you need to be honest with yourself if you're just going to live off of dividends
alone and make a hundred thousand dollars every single year you gotta say to yourself okay
i need to invest over two million dollars or if i want to buy a high dividend paying etf like qyld
which we've discussed here on the channel and i'll link it down below in the description so you can
check out that video if you're not sure what qyld is very high dividend yield of 13 but look at this
2.3 million dollars invested so in order to make a hundred thousand dollars a year in dividends a
hundred thousand dollars a year in dividends not doing anything but just putting your money into
the bank i gotta find a way to make two million dollars that's going to be a little bit difficult
right because if i take that and i plug it over here on my savings goal of two million dollars
oh i'm going to need 13 000 a month for 10 years and if i want to do it in five years wow 33 000
but if you're that aggressive and you can find a way to make yourself thirty three thousand dollars
a month that you don't need that you can invest i would love to get a beer with you sometime
for real for real whether you want to make five thousand dollars in annual income like i've been
able to do you also need to determine to yourself what is my goal and then once you arrange your
goal stick consistent with the plan that has been the most successful thing that i have found since
i started getting on track with my own investing set up the plan and stay consistent with it i'll
tell you one thing that i look at the most is vti and vo now vti is an etf that tracks the entire
stock market index the beautiful thing about vti which is one of my largest largest holdings which
is one of my largest holdings in full transparency is the fact that it tracks the entire stock market
it has over 3 000 stocks that when you buy one single share of vti it spreads your money across
all of those stocks which means if one company fails it doesn't really matter because you have
all the rest of the stock market to help balance you out so if you're a little bit confused about
getting into the stock market you're not sure what stock to pick pick them all by looking
into something like vti always do your own research though this is not financial advice
what is your goal with your personal dividend income how much do you want to make what's your
dream income for dividends and if you have any questions that you want me to address in a future
video drop them down below as well but check out this video next we'll see you on the next video