How To Earn $100 A Month In Dividends - Dividend Income Investor (2024)

How To Earn $100 A Month In Dividends — 6 easy steps to make $100 per month in passive dividend income from a small stock portfolio. I am not a licensed investment advisor and this article is not investment advice.

I recently made over $100 per month in dividends for the first time.

It happened in September 2021 to be more exact, and I made over $115 in dividends in December 2021.

Considering that I just recently hit this mark, I am in the perfect position to show you how to earn $100 a month in dividends.

If you would like to learn how to earn $100 a month in dividends, continue reading to find out how much you will need to invest and how to make it happen.

Check out my recent dividend income updates where I made over $100 per month:

Dividend Income September 2021 — $100.61

Dividend Income December 2021 — $115.72

How To Earn $100 A Month In Dividends - Dividend Income Investor (1)

How To Earn $100 A Month In Dividends In 6 Steps

I will start with an overview of the 6 steps and then dive into each point in more detail.

Here are 6 steps to make $100 per month from dividend investing:

  1. Open a brokerage account
  2. Figure out how much to invest
  3. Save money or start contributing regularly
  4. Decide on which stocks to buy
  5. Buy stocks
  6. Collect $100 per month in dividends

Let’s look at each step in more detail.

How To Earn $100 A Month In Dividends In 6 Steps

How To Earn $100 A Month In Dividends - Dividend Income Investor (2)

1. Open A Brokerage Account

Before you can invest or receive dividends, you will need to have access to a brokerage account.

The brokerage account will allow you to buy stocks and it’s also where your dividends will be paid.

So if you don’t already have a brokerage account, start doing some research and open an account.

If you live in Canada, Wealthsimple offers commission-free trading. Another affordable brokerage to consider is Questrade.

If you already have a brokerage account, you can skip this step.

2. Figure Out How Much To Invest

After you open a brokerage account, the next step to receiving dividends is figuring out how much you will need to invest.

In short, the amount you will need to invest will depend on the dividend yield of the stocks you invest in.

Let’s use a dividend stock like Enbridge (Ticker: ENB) as an example. Enbridge is a high-yielding dividend stock that offers a 6.28% yield. This means you will need to invest less than you would with a lower-yielding stock in order to earn $100 a month.

Personally, I own 78 shares of Enbridge. Each share of Enbridge pays $3.44 annually or $0.86 quarterly. So the 78 shares I own pay $68.07 four times per year.

Since earning $100 per month adds up to $1,200 annually, I would need to own 349 shares of Enbridge to earn $1,200 per year. (1,200/3.44 = 349 rounded up).

349 shares of Enbridge would pay $1,200.56 annually.

As of March 2, 2022, Enbridge shares are trading at just over $56 per share. So to acquire 349 shares of Enbridge, you would need to invest approximately $19,600.

Of course, you probably don’t want to put all your money in one stock, and most dividend yields are not as high as what Enbridge offers.

If you are investing in a stock with a 3% dividend yield, the amount you need to invest doubles. 3% of $40,000 is $1,200. In other words, you need to invest $40,000 to earn $100 a month in dividends at a 3% dividend yield.

3. Save Money Or Start Regularly Contributing

Now that you have an approximate idea of how much you need to invest, you can either move that much money into your brokerage account or start saving up.

For most people starting out, you probably have to begin saving up and regularly contributing.

That’s how I had to do it.

I recommend paying yourself first or setting up an automatic contribution.

4. Decide On Which Dividend Stocks To Buy

Once you have enough money saved up to invest in stocks, it’s time to decide on which stocks to buy.

For the record, you don’t have to wait until you have $20,000 to $40,000 saved up to begin investing.

You can start investing as soon as you have enough to buy a single share of a stock.

Personally, I like the idea of dollar cost averaging into stocks. This way, you can start growing your dividend income right away and have dividends to reinvest.

In turn, you will be able to reach $100 per month in dividends faster than if you had to save it all up yourself.

Also worth noting, dividends are not the only thing to consider when deciding on which stocks to buy.

In addition to the dividends, focus on the quality of the business, the valuation, and the management.

Related: How To Find Which Stocks To Buy

5. Buy Stocks

After you have decided which stocks to buy and saved up the cash, it’s time to start investing.

There’s not really much I can add here.

Just remember to pay attention to the price you pay for stocks, and continue to invest regularly to grow your dividend income.

6. Collect $100 A Month In Dividends

Once you have invested enough money, you will begin to see dividend income trickle in.

Unless you set up DRIP (dividend reinvestment plan), the dividends will be deposited directly back into your brokerage account.

Of course, you might be tempted to spend your dividend income. But if you view it as additional savings, you can reinvest it to grow your dividend income beyond $100 per month.

Technically, you can grow your dividend income every single month from this point, even if you stop saving.

How To Earn $100 A Month In Dividends - Dividend Income Investor (3)

How To Earn $100 A Month In Dividends — Final Thoughts

By this point, hopefully you understand how to earn $100 a month in dividends.

Overall, the process to earn $100 per month in dividends is really quite simple.

It takes time and effort in the beginning to save money. But once you get the ball rolling, you can continue to reinvest and earn more dividend income every single month.

Similar Articles On Dividend Investing To Check Out

How To Dollar Cost Average — 7 Tips To Turn Investing Into A Habit

How Do You Know How Often A Stock Pays Dividends?

Dividend Investing Tips — 9 Must-Know Tips For Dividend Investors

How Much Much Do I Need To Invest To Make $3,000 A Month?

Dividend Income September 2021 — $100.61

Dividend Income December 2021 — $115.72

How To Make $1,000 A Month In Dividends

How Much Do I Need To Make To Live Off Dividends?

I am not a licensed investment or tax adviser.All opinions are my own.This post may contain advertisem*nts by Monumetric.This post may also contain internal links, affiliate links to BizBudding, Amazon, Bluehost, and Questrade, links to trusted external sites, and links to RTC social media accounts.

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How To Earn $100 A Month In Dividends - Dividend Income Investor (2024)

FAQs

How to make 100$ in dividends? ›

Want to Earn $100 in Annual Dividend Income? Invest $1,580 in These 3 High-Yield Dividend Stocks.
  1. Verizon. The past several years have been frustrating ones for Verizon (NYSE: VZ) shareholders. ...
  2. AT&T. In 2022, AT&T (NYSE: T) sold its media assets and cut its quarterly dividend payout in half. ...
  3. Realty Income.
Mar 19, 2024

How much do I need to invest to get $1000 a month in dividends? ›

The truth is that most investors won't have the money to generate $1,000 per month in dividends; not at first, anyway. Even if you find a market-beating series of investments that average 3% annual yield, you would still need $400,000 in up-front capital to hit your targets.

How much money do I need to invest to make $3 000 a month in dividends? ›

If you were to invest in a company offering a 4% annual dividend yield, you would need to invest about $900,000 to generate a monthly income of $3000. While this might seem like a hefty sum, remember that this investment isn't just generating income—it's also likely to appreciate over time.

How much do I need to invest to make $100 a month? ›

A fixed annuity typically provides a set rate of return over a determined time period. If you have a fixed annuity with a starting principal of $10,000 and a rate of 5%, you could expect to get around $100 a month for 10 years.

How to invest to get monthly dividends? ›

Check out closed-end funds for monthly dividends

But investors do have one option if they're looking for a diversified fund that pays out monthly: closed-end funds (CEFs). These funds are collections of stocks and bonds, and they offer some diversification in their investments, helping to reduce their risk.

What stocks pay the highest monthly dividends? ›

Compare the best monthly dividend companies
COMPANYSECTORMARKET CAP
Prospect Capital (PSEC)Financial services$ 2.6 billion
Paramount Resources (POU.TO)Energy$3.1 billion
Gladstone Investment (GAIN)Financial services$439 million
LTC Properties (LTC)Real estate$ 1.3 billion
1 more row
Feb 13, 2024

How much money do I need to invest to make $4000 a month? ›

Making $4,000 a month based on your investments alone is not a small feat. For example, if you have an investment or combination of investments with a 9.5% yield, you would have to invest $500,000 or more potentially. This is a high amount, but could almost guarantee you a $4,000 monthly dividend income.

How much money in dividends to make $5000 a month? ›

To generate $5,000 per month in dividends, you would need a portfolio value of approximately $1 million invested in stocks with an average dividend yield of 5%. For example, Johnson & Johnson stock currently yields 2.7% annually. $1 million invested would generate about $27,000 per year or $2,250 per month.

How much do I need to invest to make $500 a month in dividends? ›

With a 10% yield and monthly payout schedule, you can get to $500 a month with only $60,000 invested. That is, $6,000 per year paid on a monthly basis. Unfortunately, most stocks don't have yields anywhere near 10%. Many do have high enough yields to get you to $500 a month with diligent savings, but don't pay monthly.

Can you live off dividends of $1 million dollars? ›

Once you have $1 million in assets, you can look seriously at living entirely off the returns of a portfolio. After all, the S&P 500 alone averages 10% returns per year. Setting aside taxes and down-year investment portfolio management, a $1 million index fund could provide $100,000 annually.

How much money to make $500 a month in dividends? ›

Dividend-paying Stocks

Shares of public companies that split profits with shareholders by paying cash dividends yield between 2% and 6% a year. With that in mind, putting $250,000 into low-yielding dividend stocks or $83,333 into high-yielding shares will get your $500 a month.

Is $100 a month worth investing? ›

Investing $100 per month, with an average return rate of 10%, will yield $200,000 after 30 years. Due to compound interest, your investment will yield $535,000 after 40 years. These numbers can grow exponentially with an extra $100. If you make a monthly investment of $200, your 30-year yield will be close to $400,000.

How to invest $100 dollars for quick return? ›

What Are Your Options When Investing $100?
  1. Start a Side Hustle. ...
  2. Enroll in a Course or Certification. ...
  3. Real Estate. ...
  4. Fractional Shares. ...
  5. Open a Savings Account. ...
  6. Invest in Bonds. ...
  7. P2P Lending Sites. ...
  8. Stocks/Mutual Funds.

Is $100 a month good for investing? ›

The good news, though, is that you don't need to be a stock market expert or have thousands of dollars per month to invest. In fact, with just $100 per month, you could potentially build a portfolio worth $325,000 or more.

How much to make $1,000 a year in dividends? ›

Earn $1,000 in dividend income with this strategy

With the current dividend yield at 5.9%, you would need to invest around $17,000 into Pfizer stock to earn $1,000 in annual income. If you wanted to earn $1,000 in monthly income, you'd need to invest roughly $200,000.

How much to make $500 a month in dividends? ›

With a 10% yield and monthly payout schedule, you can get to $500 a month with only $60,000 invested. That is, $6,000 per year paid on a monthly basis. Unfortunately, most stocks don't have yields anywhere near 10%. Many do have high enough yields to get you to $500 a month with diligent savings, but don't pay monthly.

How much do I need to invest to make 1000 a year in dividends? ›

This means you can secure $1,000 of annual-dividend income by investing about $11,765 spread evenly among them. Here's why they look like a good deal that could get much better by the time you're ready to retire.

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