Before I begin talking about this post I have to tell you that I am not a financial advisor and I am not giving anyone any financial advice on the stock market or how to handle money. In this post, I am just giving my opinion about this topic. So you want to make $500 dollars per month from dividend paying stocks which can happen with the right mindset and hard work. That is my goal right now in the stock market, is to make $500 dollars per month with dividend paying stocks for passive income. I have a few post talking about dividend paying stocks and how I got started in March 2020 when the stock market crashed and I started to buy low price stocks at a great price and I was telling people about the stock market.
I wanted to get 20 different dividend paying stocks to $1.00 dollar each but when the market crashed, I had to buy the high priced stocks when they were at a low price. So I changed my mind about the $1.00 dollar per stock and wanted to build something more passive and I wanted to get $500 per month in dividend income. With $500 dollars coming in each month, they pays our light, water, cell phone and internet bills so that we don’t have to pay them and the money my wife and I had to spend for those bills can go somewhere else like into a new investments.
So I know how you feel about making that kind of money and that is my goal right now so in this post , lets talk about how to bring in $500 a month with dividend stocks. I have a YouTube channel about dividend paying stocks and my stock portfolio And you can see the stocks that I buy and I will tell you why I buy them. If you want to check that you can click here: https://www.youtube.com/channel/UCKIXApIrXdvyajZvKV4VSHg
How long would it take me to bring $500 a month with dividend stocks?
If you work hard a keep investing and reinvesting your dividends payments and cut off things that take up your money, you can make $500 dollars in 5 years if you make the right investments over time. In march 2020 when I started buying cheaper stocks when the stock market fell, at the end of the year, I was making about $98 per month in dividend paying stocks. I with robinhood to buy my stocks and using my buying history on the app, I received $515.29 of the year 2020.
So I wanted more but keep in mind that I started in march buying dividend paying stocks and I didn’t know much about them so I didn’t know what I was doing at the time. Now today I know what to how and it’s getting easier now that I know which stocks to buy. Back then I was getting .40 to .50 cents per shares that I had and today, those same stocks bring in about $12 to $13 dollars so I am making more money now and as always I reinvest those dividends back into the market. So starting 2021 I am buying more shares and reinvesting the dividends that I get so the pace this year should go much faster and next year it should go faster than this year in buying dividends stocks.
Right now, if I can save money and cut things out that I don’t need, if I don’t buy anything crazy, if I reinvest my dividends, I should hit the $500 per month in 4 years. Remember in year 3 I will be making more money from dividends so I can invest that money as will. Please my wife and I save money on things like not going out to eat all the time and she starting cutting my hair from home so I don’t have to waste time and money on paying someone else to cut my hair. Right now use my money from working I invest about $450 to 500 per month into the stock market and reinvest the dividends that I get.
How to make $500 a month with dividend stocks
The first thing you can do in do some research on the stock market before buying anything. Investing into your is key and before buying any stock, you research the company that you want to buy. The next thing you can do is save money. By saving money and lowering you bills, you can invest more money in dividend paying stocks. So if you pay someone to cut your grass, try cutting it yourself if you can to save that money. If you have a high cell phone bill, try a per paid plan to save money.
I use cricket wireless for my cell phone provider and I use to have Verizon and I save so much money over time. I do invest in mostly into monthly dividend paying stocks so that plays a big part and what I do is once I have done the research on a company that I like, I would be enough shares of that company to make me $10 dollars. So ten different stocks to $10 dollars is make goal. Right now I hit that goal and now those stocks that are paying me $10 dollars per month, I feel I can trust them and now I getting them to $20 dollars per month and I make working on new stocks as well to get them up to par. I show my whole stock portfolio On my YouTube channel https://www.youtube.com/channel/UCKIXApIrXdvyajZvKV4VSHg
What stocks do you invest in to get $500 in dividends
Well I will give you three of my favorite dividend paying stocks that I like the most and these stocks payed me during the stock crash of 2020 so to me if a company still pays a dividend during a stock market crash and there stock price dropped and they still payed a dividend, well those are the type of companies that I like to invest in and that should be one factor when looking in these types of stocks. Can they still pay a dividend during the bad times cause if they can, they to me are good companies to invest in so the first stock which is my favorite is called main street capital And the ticker symbol is MAIN. To sum them up that provide capital to lower and middle market companies and they offer business owners, and entrepreneurs financial sponsors. Right now at the time of my writing this post, they pay a .20 cent per share dividend per month. Right now I am trying to get 100 shares. If you would like to check out this company you can check out there website here: https://www.mainstcapital.com/
The next stocks is called Horizon technology and the ticker symbol is HRZN and they provide structured debt products to life science and technology companies. Right now they pay a .10 cent per month dividend and they pay this every month. Right now I have 101 shares and my goal is to get 200 shares. If you want to check them and you can click here for more details: https://horizontechfinance.com/
The last stock is called QYLD and this is a ETF and they follow covered calls or buy write strategy. This fund buys the stocks in the Nasdaq 100 index and sells corresponding call options. This ETF has some great holding inside but that is my opinion about that and if you want more info about this ETF you can click here: https://www.globalxetfs.com/funds/qyld/
The bottom Line
You have to keep invest into the stock market and into dividend paying stocks first. Make sure that reinvest your dividends every time you get a dividend. Make sure that you do the research before buying any stocks beforehand. Try cutting things out that you don’t need and stop wasting money on thing that you don’t need. Once you hit that goal, all the time, all the work and money you put in the stock market will pay off and I know when getting .20 and .30 cents is not a lot of money but over time if you can invest into stocks that you like and are strong, you start getting dividend payments like $10.00 or $13.00 per month and they will help you more stocks.
And Again I am not giving anyone financial advice and I am not a financial adviser and you should seek out before buying any stocks or handling money. Please check out my dividend stock YouTube channel where I go over all of my stocks that I have and my goals for the future. https://www.youtube.com/channel/UCKIXApIrXdvyajZvKV4VSHg
