Lux Investing

How much is needed to invest for a $2k a month income in dividends?

How much is needed to invest for a $2k a month income in dividends? And what stocks are best to achieve this? Blue Chips, Large Caps, High Equity?

Public Comments

1. About $800,000. You'll want income-producing stocks. Generally, you can get 4% per year without much risk. Of course you can get that from bonds, but the dividend-producing stocks should increase their dividend as time goes on. Beware of stocks that pay a huge dividend compared to their price---there are good reasons why those stocks are cheap.
2. It depends on the stock and how much of a dividend that stock pays. The Grand Daddy of all dividend paying stocks is Altria aka Phillip Morris, symbol MO, currently pays $3.00 a year per each share, so you would need 666 (666 * todays closing price of Altria of $69.96 = $47,000) shares of Altria to earn $2000 a year in dividends (666 shares of the evil Altria, how ironic, but I digress). But then you must consider taxes. Currently, dividends are taxed at 15%, thank you President Bush, so you would need more than 666 shares of Altria if you would like $2000 dollars post tax. Altria is known for generously increasing its dividend every year. Some other companies that pay large dividends are: Bank of America symbol:BAC AT&T symbol: T Southern Copper: PCU Utility companies & REITs (Real Estate Investment Trusts) Also pay a large steady dividend Take a look over at yahoo finance Full disclosure - I have never owned Altria
3. Right now youd need about $22000.. look at some closed end funds like BFD, ETY, AGC, AOD...
4. income generating stocks, preferably companies listed in different countries/regions. For investment amt, depends on what you are buying. I have a portfolio of $100k and only generates about $2 to $3k of dividends, mainly because I have many growth stocks that do not pay dividends.