Today, I want to take a look at real life examples that will show you how to make $1,000 a year in dividend income off of $10,000. It just requires finding the right mixture of income yielding securities. Here is a portfolio of REIT’s, utilities, energy, and financial stocks that could generate a 10% annual return.
Dividend Income Portfolio
57 shares of VerizonComm. (VZ) @ $35.11 = $2,001.27
70 shares of Hatteras Financial (HTS) @ 28.53 = $1,997.10
474 shares of Chimera Invest (CIM) @ $4.22 = $2,000.28
51 shares of First Energy Corp (FE) @ $39.43 = $2,010.93
105 shares of Triangle Cap (TCAP) @ $18.97 = $1,991.85
Total Cost: $10,001.43
Verizon dividend = 57 shares x 1.95 = $111.95
Hatteras dividend = 70 shares x 4.00 = $280.00
Chimera dividend – 474 shares x .68 = $322.32
First En. dividend = 51 shares x 2.20 = $112.20
Triangle Cap dividend – 105 shares x 1.68 = $176.40
Total Dividend Income: $1,002.87
Keep in mind that this dividend amount does not take in account reinvested dividends. The actual amount would be much higher if dividends were reinvested. This is just a hypothetical portfolio. It is by no means a recommendation to go buy each of these stocks. I just wanted to illustrate that you could easily earn over 10% on your portfolio in dividend income.
As you can see its easy to make money investing with a consistent dividend income.