This is the Lowest Amount You Need to Live Off of Dividends

When it comes to truly living off of passive income, in my opinion there’s no better option than being able to live off of dividends. While it’s true that there’s other different types of passive income, such as owning real estate properties, selling your own book or starting a blog, there’s really nothing out there that requires so little work to maintain than being able to live off of the dividend distributions of your investments.

With dividend investing, you automatically receive dividends directly into your brokerage or bank account every single month or quarter. It’s the absolute easiest way to earn a living without having to raise a finger, with the exception of checking your portfolio maybe once every couple months. Even if you couldn’t fully rely on dividends for a living, that extra money you receive could be the difference between working a job you hate and switching careers to a job you enjoy. Or it could be the difference between working full time and working part time and spending the rest of your time with family or friends doing whatever you wanna do.

In todays video we’re gonna take a look at several different types of investments and figure out how much money we really need in order to live off of dividends. For this example, we’re going to assume that you want to live off of $4,000 a month. Which may or may not actually be quite a lot depending on your life circumstances.

[NicholasBall]

If I had $360k I would invest $100k in tech & $260k into dividend stock with a proven track record to grow with capital appreciation & dividend increase year over year

[cybshbv]

Dividends are what got me into investing in the stock market. The thing to me is, if you invest and have other income outside of dividends then you will be able to live off dividends without selling. Which means you can pass that on to your kids which will give them a leg up in life. Have over $600K in my portfolio as I bought a lot of dividend stocks before, I'm buying more now, and I will buy more when it drops further.

[lawerencemiller]

Dividends are dope. Personally, I sometimes use my dividends to buy other dividend and growth stocks for diversification instead of reinvesting in the same stock. To each their own methods though. The good thing is that you’re investing in the first place and that’s what’s important. Salute for the content!

[Riggsnic_co]

Rate cuts commence in June 2024, taking 6-8 months to complete. A potential crash, if any, might occur by March 2025. The soft landing narrative is gaining traction, making this big recession everyone is calling for less likely. With $1 million from a business sale, I'm seeking profitable investment opportunities for the next 3 years.

[austingraff]

I have been a dividend focused investor for a long time. This does not mean I don't own growth stocks, I do. A well rounded portfolio should be a mixture of both categories. One way to minimize the anxiety out of stock market investing, is to make sure you keep a large cash cushion. I invest in the market, but never put all my money in market.

[MarvishaN]

Super relieved to see that someone is teaching them this. I didn't find it out until I was about 42. I began investing actively at the age of 34 in the stock market with the assistance of a licensed broker who I met at a financial seminar. I'm 50 and Currently newly retired with over $3 million in net worth and no debts. Spending time with our children and grandchildren! also now make around half of my income from dividends and option premiums. If I had known when I was 20, I would have retired a billionaire. Please pass it on to your children for their own good.

[andrewchandler]

Roughly $120K in my portfolio are in tech/TSLA stocks, can I get an advice on any other stocks that I can acquire to diversify my reserve across multiple markets while creating a comprehensive portfolio allocation that balances my concerns of risk aversion and returns that meet yearly inflation.

[EverlyndPerez]

I was advised to diversify my portfolio among several assets such as Dividend stocks and bonds since this can protect my portfolio for retirement. I'm seeking to invest $200K across markets but don't know where to start.

[johnlennon]

Like Warren Buffet said, dividends are only good if the business you're investing into can't make good use of that capital. So, if you're trying to invest in businesses with actual growth, looking at dividends is a waste of time. Why are you investing into a company if they're returning capital to you because they think you can make better use if it than they can. It's not much different from bond investing. The way I see it, if you have a $1 million at some point, that'd be enough to create a portfolio that would pay you between 50k - 70k in dividend income.

[williamyejun]

Like Warren Buffet said, dividends are only good if the business you’re investing into can’t make good use of that capital. So if you’re trying to invest into businesses with actual growth, looking at dividends is a waste of time. Why are you investing into a company if they’re returning capital to you because they think you can make better use if it than they can. It’s not much different from bond investing. The way I see it if you have a $1 million at some point, that’d be enough to create a portfolio that would pay you between 50k-70k in dividend income...

[darnellcapriccioso]

In spite of how everyone is frightened and calling the crash, there is already an excessive amount of demand waiting to absorb it, which is another reason it's less likely to happen that way. This forecast was not made in 2008, at least not by the general public, as I will explain below. The ownership rate peaked in 2004, according to the other comment. We reached a peak in the second quarter of 2020 and are currently at the median level. From 2008 to 2012, it fell by 3%, and in the second quarter of 2020, it dropped from 68 to 65.

[stephaniestella]

I want to invest $40k in profit-yielding dividend shares but am not sure which to buy into because dividend-paying stocks don't give rapid price growth and can provide a steady income stream.

[Greggsberdard]

I started investing because I liked the extra money from stock dividends. The key, in my opinion, is to make enough money through both investing and dividends, so you can live off the dividends without selling anything. This way, you might pass on this financial advantage to your kids. I've put more than $600K into dividend stocks over the years, and I'm still buying more, planning to keep going until prices drop more.

[andrew.alonzo]

Dividends are a great thing, but they’re only really effective for passive income when you either have somewheres over 20 to 25 thousand shares of a high yielding stock. Meaning you likely need to have a few hundred thousand if not more invested in it. Re-investing dividends back into the same stock certainly does snowball with compound interest, but you only really start seeing it after 20 years of never stopping and likely needing to add additional money of your own with it….so it’ll be time consuming and costly. The way I see it if you have a million dollars at some point, that’d be enough to create a portfolio that would pay you between 50 to 70 thousand in dividend income

[ClementRusso]

Dividends from the stock market encouraged me to begin investing. What matters, in my opinion, is that if you invest and make additional money in addition to dividends, you will be able to live off of dividends without selling. It implies that you can provide that benefit for your children, giving them a head start in life. I've invested more than $600K in dividend stocks throughout the years; I'm currently buying more today and will continue to do so until the price falls even further.

[bobald]

As someone from rural Tennessee, $4000 dollars a month is enough to be considered the rich uncle.

[matturner]

I would think that a major benefit of dividend investing is that calculating portfolio size needed is not relevant. We don't care about the value of the portfolio. We care about the sustainable income it pays. As you invest you can gradually see the income rise as you invest more and pull the retirement trigger when it's high enough regardless of the market sentiment.

[louisairvin]

Thanks again for sharing all this information, still holding some cash the low is taking longer than expected but I am hanging in there meanwhile as holders we can still make good profit. I added $289k to my portfolio in a matter of months. You must look for support, in the right places

[tonysilke]

I like investing in close-end funds that pay monthly dividends. The trick is to hold long term and reinvest the monthly dividends plus buy more shares on a monthly basis or whenever you can afford to. This can be easily done because close-end funds are bought and sold on the stock market just like regular stock. That’d be enough to create a portfolio that would pay you between $50k to $70k in dividend income

[albacusBC]

Roughly £120k in my portfolio are in tech/TSLA stocks, can I get an advice on any other stocks that I can acquire to diversify my reserve across multiple markets while creating a comprehensive portfolio allocation that balances my concerns of risk aversion and returns that meet yearly inflation.