Today, I want to take a look at real life examples that will show you how to make $1,000 a year in dividend income off of $10,000. It just requires finding the right mixture of income yielding securities. Here is a portfolio of REIT’s, utilities, energy, and financial stocks that could generate a 10% annual return.
Dividend Income Portfolio
57 shares of VerizonComm. (VZ) @ $35.11 = $2,001.27
70 shares of Hatteras Financial (HTS) @ 28.53 = $1,997.10
474 shares of Chimera Invest (CIM) @ $4.22 = $2,000.28
51 shares of First Energy Corp (FE) @ $39.43 = $2,010.93
105 shares of Triangle Cap (TCAP) @ $18.97 = $1,991.85
Total Cost: $10,001.43
Dividend Income
Verizon dividend = 57 shares x 1.95 = $111.95
Hatteras dividend = 70 shares x 4.00 = $280.00
Chimera dividend – 474 shares x .68 = $322.32
First En. dividend = 51 shares x 2.20 = $112.20
Triangle Cap dividend – 105 shares x 1.68 = $176.40
Total Dividend Income: $1,002.87
Keep in mind that this dividend amount does not take in account reinvested dividends. The actual amount would be much higher if dividends were reinvested. This is just a hypothetical portfolio. It is by no means a recommendation to go buy each of these stocks. I just wanted to illustrate that you could easily earn over 10% on your portfolio in dividend income.
As you can see its easy to make money investing with a consistent dividend income.
WOW! You took dividend investing to the extreme.
There are several inefficient markets out there waiting to be explored. Domain Names, overseas securities, the american market is over saturated and full of scams. Arthu Levit (SEC Chairman) explains in detail on his recent book, Take on Street.
Good compilation. I was happy to see Smucker’s on that list. I have long admired Smucker’s for being an ethical company and believe they are a good (profitable) long term hold. They have #1 brands in coffee and fruit spreads indeed, but also have the #1 brand of retail donut shops (Dunkin’).
Another way of increasing income is via royalty trusts — many pay monthly dividends (ie: Permain Basin Royalty Trust -NYSE:PBT) , or high-yielding energy plays such as Kinder-Morgan (NYSE:KMP) # Div/yield 1.13/6.28 when a good entry point arises (currently trading at P/E of 58; slightly above it’s peers).
Good Luck, All
Sorry but which one is smucker’s?
Nice portofolio. How many of these do you own yourself?
Sorry, guess I should have disclosed that. I currently have positions in all mentioned. They have treated me very well & expect them to continue to.
Btw, great way to kick me into gear to get the money I need to invest. Thanks!
You’re welcome Ginger!
Interesting list. I have been able to buy many CEF’s, ETF’s, Stocks and other funds which allow me to have a steady 8-9% return. I tend to try to find CEF’s and ETF’s that pay 9-10% range and have a history of holding NAV. Also to add several dividend growers (I do consider VZ as one) it will bring down initial yield but will eventually meet and possibly exceed 10% yield on cost.
nice list.
but be careful, be very careful. did i mention to be careful?
when a security is paying dividends substantially more percentage-wise than many others, there is danger. two of the items listed (HTS, CIM), which both are over 10% current yield, are in the mortgage securities business. so maybe they will do well and maybe not, but you need to know about the risk one is taking.
good luck.