I want dividend income of $1000 a month / myLot

Singapore

December 10, 2015 8:00am CST

My goal for the future is to grow the dividend income until it is $1000 a month. That means an annual income of $12,000 just from dividend. How much capital do you think I need? If you are thinking in term of bank saving interest rate, it is unlikely that I can get that kind of capital. At a low rate of 1%, it means that I need to put $1,200,000 just to get $12,000 a year in dividend or interest. I am thinking of 7% dividend yield. That means I need to invest $171,428 in the stock market. If I can increase the dividend yield to 10%, I need $120,000 in the stock market. That is possible only after a stock market crash that brings prices down to very low level.

6 people like this

5 responses

Suzanne

@Morethanamom (1948)

• Canada

10 Dec 15

That is a lofty goal. I remember doing some accounting for a small company that earned income from investments. I can't remember exact numbers, but they had quite a bit invested. Just remember that dividends and interest income are taxable as well(at least they are here in Canada).

1 person likes this

scheng1

@scheng1 (24649)

• Singapore

11 Dec 15

These are not taxable in Singapore. Capital gain, dividend income, overseas income, and interest income are not taxable. That is why many rich people like to come here. The only investment income that is taxable is rental income.

1 person likes this

Suzanne

@Morethanamom (1948)

• Canada

11 Dec 15

@scheng1 that is some interesting information! Over here they tax just about everything!

1 person likes this

scheng1

@scheng1 (24649)

• Singapore

11 Dec 15

@Morethanamom That is because we do not have social security or unemployment benefit. Since social spending is minimum, the government does not have to tax everything.

Anh Phan

@anh101 (1379)

•

11 Dec 15

I think with time, and investment in knowledge, and action upon that, you can get it faster than stocks. i think every investment is risky, in Vietnam, investor can be very much risky becuz of the information is not a transparent channel. that's why the rich keeps being richer and the poor stay the same. Everyone wants to be richer, but the only one knows exactly where is his/her treasure then he is the richest. I guess i read too much scriptures?

1 person likes this

scheng1

@scheng1 (24649)

• Singapore

11 Dec 15

There is no need for fast information. You can read the annual report and the quarterly financial result when you want to know how good a company is. All these information are available online.

1 person likes this

Anh Phan

@anh101 (1379)

•

11 Dec 15

@scheng1 I am afraid to tell you that Vietnam company doesnt run like in your country, therefore investment can be very hard to predict, hehe

marguicha

@marguicha (230365)

• Chile

10 Dec 15

I don´t know much about how stocks are in the market. I can only guess that the more they pay , the riskier they are.

1 person likes this

Marlina

@marlina (154103)

• Canada

10 Dec 15

Good luck with your selection of stocks.

1 person likes this

GreatMartin

@GreatMartin (23670)

• Ft. Lauderdale, Florida

11 Dec 15

The stock market is a bigger gamble than a bank--and you didn't figure the interest being compounded!

1 person likes this

scheng1

@scheng1 (24649)

• Singapore

11 Dec 15

The stock market is not a casino. The gamblers are treating the stock market as a casino. If you do not see Nike, McDonald's, Coca-Cola, and other companies as a gamble, you will view stock market as a big gamble. As long as you read the annual reports, and understand how money is made, and make sure you choose companies that are always profitable, you will earn a decent dividend income.