How Many Shares of Stock to Make $1,000 a Month? | Passive Income

If you want to make $1000 a month is passive income by investing in the stock market, how many shares or money would you have to invest.

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1. Simple Formula ( percentage in decimal by total yearly income ) = portfolio value
- Once you understand this formula that you can do with your phone
- Then you can do this with any company that you are looking to invest in
- Btw be careful using dividend as the only reason you into a company, sometimes bad unhealthy company bait you into an investment with a promise of a high dividend

Formula: (annual income you want/dividend yield in decimals) = How much money you need to invest ( bonus, divide it by share price to know how many shares)
- To get dividend yield into decimals just divide it by 100 Boom
- Then multiply your monthly income goal by 12 months to get the annual
- Once you divide those two number in the order I gave you will have the amount of money you need to have invested
- Then divide that number by share price to know how many shares

Tip: Keep in mind one thing, this number does not include taxes, and dividend are taxed as ordinary income, so check your federal tax bracket and state taxes

For example
- if I get taxed 22% and state taxes are maybe another 8% = 30% tax rate
- Which mean that 12k per year turns into less money
- So if you want to include taxes a simple but not accurate way to do it, is just to increase the amount you need by your tax rate
- I’ll do an example don’t worry.

Fun Fact: dividends are apart of double taxation, the company gets taxed on the income, and then you get taxed on the income also.

2. Popular Stocks: apple Stock, Coca-cola, Bank of America
- We are going to do 3 examples, very popular companies most of you should know
- And as you probably not all companies pay a dividend
- Some of them use the money to reinvest it, Amazon and Berkshire Hathaway are two great examples.

Apple Stock
- The dividend yield is .66% ( to find the dividend yield just go to yahoo finance)
- We want to make $1000 a month from apple

Formula:
Step 1: turn the .66% dividend yield into a decimal ( divide it by 100 ) you get .0066
Step 2: divide annual income by decimal (12,000/.0066) = 1.818M
Step 3: Divide it by share price: 1.818M/124.81= 14,567 shares of apple stock

Coca-cola Stock
- The answer should be: $364k
- Around 7,319 shares
- Because coca-cola pays around 3.29%

Bank of America
- The answer should be: $437k
- Around 16,652 shares
- Because dividend is around 2.74%

Tip A: I know these numbers look insane, but you don’t have to buy them all at once. The key is just to keep investing.

Tip B: if a stock split happens your dividend will be split but will add up to the same amount so don’t worry.

3. Portfolio and my numbers
- The first thing is that I rarely invest in individual stocks
- All my investing are into ETFs and Bonds
- Its safer and takes a lot less risk
Here are the numbers:
- My goal is to make 48,000 a year from my dividends
- My average dividend yield from ETFs and bonds is around 2.83%
- Math: 48k/.0283= 1.6 Million dollars ( currently I have 100k so im 6% of the way there)

But there is another way:
- And btw I invest with acorns and m1 finance, ill put links to my portfolio down below.
- Now the other way still include math, and I promise this is the last formula I'm going to give you guys

Math using the 4% withdrawal rule:
- If you withdraw 4% of portfolio your guarantee to not run out of for at least 30 or till forever, you only run out in 30 if the craziest market down happen and persist for decades almost
- To figure how much you need: just multiply your goal by 25 and that’s it
- I want 48 x 25 = 1.2M and 4% of that is 48k

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*Some of the links and other products that appear on this video are from companies in which Tommy Bryson will earn an affiliate commission or referral bonus. Tommy Bryson is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. I'm an Accountant but I'm not your Accountant, always review information with your Accountant/CPA and your Financial Advisor.

[TommyBryson]

Here is a video on how I Saved my first 10k

[liamjohn]

The stock market is surely a lucrative way to invest, whether you want high growth, leverage, stable income, or something in between. It’s possible to make a consistent $1, 000 every month from the stock market.

[.Koreans.American]

Who else started to earning dividend in 2020?🙋‍♀️

[timcoady]

Investing in dividend stocks is a good way to let your money work for you, just be sure not to overlook the fundamentals of the company and get blinded by its dividend. It's great if you make 5% a year but if the stock losses 20% per year you in trouble.

[makeouthill]

I got my first dividend. It was one penny. 😂😂😂😂😂😂😂😂

[ThinkMoneyBenny]

in reality, dividend income is one of the best forms of passive income 💯

[TedGetsBread]

Lotta great dividend stocks out there! the trick is to diversify enough to where you actually get dividend payments ACTUALLY Monthly.😂

[donaldsmith]

Commendable video on Cryptocurrency and forex investment....Statistics have shown that beginner investors fall prey to the unpredictability and flexibility feature of the market. Mrs Tracy Brad has shown high professionalism in handling trade risks...She stands out as a broker of integrity reputed for predicting and managing market changes. she's indeed the most reliable and sincere broker i know..

[DrellJones]

Truly the meaning of making your money work for you 💰💯

[brianramos]

“Okay, why don’t you break this down to me like I’m 5?” - Michael Scott

[billyolson]

Every time is a good time to invest!
Investment is n ot a game of chance or
luck like the lottery, rather it involves
critical reasoning, planning, and diligence
and focuses on achieving the major goal
(PROFIT). Notwithstanding, one should put
into consideration that various externalities
may occur during the investment period
which could result in a high yield in profit or
loss.

[tomy]

👍 I'm glad you made that disclaimer about looking into the company first. So many people end up picking companies just based on dividend yield and it just doesn't end well. 🤦🏽‍♂️

[tholy]

the clearest and easiest video to understand about dividend calculation on youtube. Deserved my subscribe and like

[extremeauto]

I got to like 53 sec 😂 couldnt take his screaming ..

[cashmonyz]

Schools out and YouTube giving me math homework

[benharrop]

Great video Tommy...right now its safe to invest in an ETF that tracks the S&P500 and ride it out, There are so many stocks going to rocket in the long run.. While I'm a huge fan of stock picking, I have made a few rather modest investments in individual companies... I try to be diverse in my stocks..i put $120k into some growth stocks with a Financial advisor/broker handling my portfolio, these are some of my picks...NVR, SEB AMZN ZM, AAPL NYSE, LISP.SW, NVIDIA,, NIO, NASDAQ, TSLA, I've gotten 140% return so far this year, I'll keep holding to see where it goes..

[williamnalley]

Love the your content and keep up the good work. But you are partially right on how dividends are taxed. Tax rate depends on whether you are receiving qualified or nonqualified dividends

[adamb]

This is basically a goal. I’m just starting out. This isn’t an ultimate endgame goal. But it’s a long term milestone I want to get to. So far in the 4 months of holding stocks, I’ve gotten $250.
So encouraging but a long ways to go.

[tomnshauna]

Tommy, you are on your way there, I wish I were as investor savvy as you are, at your age. I'm pretty knowledgeable now, but im 54.

[abitler]

Qualified dividends(most stock like att apple ect.) Have a reduced tax rate (long term capital gains rate) most stocks fall into the category

Riets/bonds/non qualified dividends pay ordinary income. Riets can also use the passthrough 20% exemption (you only pay taxes on 80 cents for every dollar earned).

Also each state has its own rule for state taxes