Monday, December 26, 2011

Revisiting Goal #5

Yesterday, I posted my goals for 2012.  I started thinking more about goal #5, which is to generate an additional $2000 per year in dividend income.  Just doing some simple back of the envelope calculations, this is what I find:

Assume:
8% dividend yield (I know this is high, but I have some stocks in mind that will average this)

(0.08) x $2000 (my dividend goal) = $25,000 total to invest to reach my goal

Sounds like a lot!  But it can be done, here's how:
-I make almost 3k a year in my taxable account in dividends.  All of this money will go towards it.
-I make about 13.5k a year in my bank stock dividends.  Lets say I take 3 of the 4 quarterly checks and put them towards this.  Thats $10,000, leaving me about $12K short.
-For the rest of the 12K, I'll need to invest around 1k a month.  I could almost do that now since my car and tv are paid off, and I can easily do it if I get a new job and downsize the apartment.

So there you go.  The goal is ambitious, but doable. And boy would it be nice to have that extra money coming in next year!

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