How Many Shares of Stock to Make $1,000 a Month? [7 Popular Stocks]
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How Many Shares of Stock to Make $1,000 a Month? [7 Popular Stocks]

How many shares of these stocks would you
need to make $1,000 a month income? How do you create cash flow from your investments
you can live off each month? In this video, I’m digging into the numbers
to reveal how much you need to invest. We’re going to look at this from different
ways and then I’m going to reveal a secret to stock investing most investors don’t
think of. We’re talking stock market investing today
on Let’s Talk Money! Beat debt. Make money. Make your money work for you. Creating the financial future you deserve. Let’s Talk Money. Joseph Hogue with the Let’s Talk Money channel
here on YouTube. I want to send a special shout out to everyone
in the community, thank you for taking a little of your time to be here today. If you’re not part of the community yet,
just click that little red subscribe button. It’s free and you’ll never miss an episode. Those of you in the community know, we’re
all about dividend investing here on Let’s Talk Money. I love talkin’ other types of investing
and making money but there’s just something about that passive income cash flow you get
from dividends that’s tough to beat. In nearly a decade as an equity analyst, I’ve
learned there are few things better than a reliable stream of dividends. But how do you turn a handful of dividend
stocks into that cash flow? How do you get to a point you can live off
those dividends. How many shares of some of the most popular
dividend stocks do you need to make that dream a reality? That question is straight from the comments
to one of our videos here on the channel. So in this video, we’re going to answer
that for seven of the most popular stocks out there. We’ll first look at how many shares and
then how much you need to invest in each to reach that thousand-dollar monthly payday. Finally, I’m going to reveal a truth about
dividend investing that most people don’t think about when they’re going after these
stocks. I’ll show you exactly how to plan for that
payday and how to get there. For the video, I picked six of the most widely-held
dividend stocks and a fund with one of the highest yields you’ll find. We’ll look at the dividend yield on each
and then I’ll show you how many shares of stock you need in each and the dollar amount
to secure that $1,000 monthly income. We just posted an analysis of Apple shares
on the channel last month with about a $220 price target on top of its 1.5% dividend yield. Apple has a new lineup of iPhones coming out
this year and is really building its base for services. Ford is another stock we’ve recently analyzed
and added to our seven-stock passive income portfolio. The shares dropped hard on last quarter’s
earnings but that six-and-a-quarter percent dividend is secure and the long-term upside
is positive. I’ll link to that passive income dividend
portfolio in the video description so make sure you check that out. Of all the dividend names, I think AT&T is
the one I hear most about from you in the community. The company’s made some major acquisitions
over the past year so it’s in that growth stage and the 6% dividend is hard to beat. Realty Income is a solid player in the real
estate space and pays a 3.9% dividend yield. Now this one actually pays monthly rather
than every three months like the rest of the stocks in our list. That means you don’t have to time your dividends
or save some of that quarterly check, you can just collect it every month. I just did an analysis of Netflix so I looked
into Disney as a competitor and gotta tell you, I really like the growth potential on
this one. It’s not a strong dividend name with just
a 1.2% yield but we’re going to see in a little bit that the total return has been
one of the strongest. 3M is another popular dividend stock I get
a lot of requests for and a solid 3.3% yield. 3M is diversified across almost every part
of the industrial process so it’s a stable stock that really follows the economy. This company though has one of the best research
and development departments I’ve seen and that allows it to get a little extra return
on what you’d expect above baseline economic growth. Our seventh stock isn’t a stock at all but
a fund, the Alerian MLP fund, and those of you in the community will recognize this from
our 2019 dividend stock portfolio. The fund is an excellent group of pipeline
companies in the US energy space, so really primed for that energy independence, and pays
a high 8% dividend yield. Now let’s look at how many shares you need
in each to generate that monthly cash goal but first, I want to send this out to you
for a feedback question. Which dividend stocks did I miss, which ones
do you want to see highlighted in videos. Scroll down and let me know in the comments
below the video. So if you look at the dividends per share
for each of these companies and that $1,000 monthly goal, you get the number of shares
of stock in each you’d need to buy. And we see some hugely varying numbers here,
right? At the top end, you’d need almost 20,000
shares of Ford at that $9.30 each to produce the thousand a month. That’s at a solid 6% dividend yield but
just a $0.60 per share annual payout. You’d need over 15,000 shares of the Alerian
fund or 5,800 shares of AT&T stock. On the lower end, you’d need 2,100 shares
of 3M at that $177 price and the $5.76 per share in annual dividends. But what if we look at it from another perspective. How much do you need to invest in each stock
to reach that thousand-dollar monthly goal? After all, you receive that dividend yield
on the amount you have invested so it would make sense to look at it this way. And here we see a completely different story
with some of those high-yield stocks on the bottom. We need just over $150,000 in the Alerian
MLP fund with its 8% dividend yield. Just $200,000 in shares of AT&T and its 6%
yield are enough for a thousand in income each month. On the other hand, you’d need $810,000 in
Apple or almost a million dollars in shares of Disney with their sub-1.5% yield. But the truth is, neither of these perspectives
is the right one. Trying to get that thousand-dollar income
from Apple looks nearly impossible, needing $810,000 invested in the stock. Even some of those high-yield stocks like
AT&T, you’d need over $200,000 invested. But you can’t just look at dividend yield
and this is something that a lot of dividend investors get wrong. If you’re living off your investments, so
depending on your stocks for a monthly income, then you have to look at the total return
in the investment. When you do this, that amount you need invested
changes completely and actually living off your investments becomes a real possibility. Shares of Disney produced a 12% annual return
over the last five years. That’s stock price gain and dividends. At that return, you’d need just $99,800
in the shares, not the million we saw in the graph, to produce that thousand dollars a
month. Better yet, shares of Apple. Remember at that 1.5% dividend yield, we needed
$810,000 in the stock for that thousand-dollar dividend? On Apple’s 17.5% annual return over the
last five years, you’d need just $68,500 to generate $12,000 a year in profits. The moral here is you can’t just look at
dividends. Learn to look at the total return in shares
of stock to see where a company can take you. Reinvest your dividends as long as you can
to grow the portfolio so when you need that monthly income, it’s going to be there to
support you. Click on the video to the right to see how
I created a portfolio of dividend stocks that will provide that monthly stream of cash flow. Seven companies that pay dividends and grow
their stock price. Don’t forget to join the Let’s Talk Money
community by tapping that subscribe button and the bell notification.


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