July 21, 2024

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I Have $100k to Invest. How Much Can I Make in Dividends?

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A woman making a lot of money with dividends

Popular conceptions of investing involve trading company stock when its value appreciates. However, dividends allow you to profit from holding company stock without selling it. Dividends offer investors regular cash payouts from companies they’ve invested in, resulting in passive income. Whether you’re a seasoned investor seeking to optimize your portfolio or a newcomer curious about the power of dividends, here’s what you can expect to receive if you have $100k to invest. You may also want to discuss your strategy with a financial advisor to maximize your returns.

How Much Can You Make in Dividends with $100K?

Your earning potential with $100,000 in dividends depends on how well the companies you invest in perform and how they distribute dividends. One way to measure performance is through dividend yield. You can calculate dividend yield by dividing annual dividend payments by market price per share. For example, let’s say you received $100 in dividends last year. You held one share of stock worth $1,000. As a result, $100/$1,000 = 10%. So, the dividend yield means you would estimate a 10% return in dividends through your investment next year.

With this concept in mind, here’s a table demonstrating how your portfolio’s dividend yield increases your earning power with $100,000:

Portfolio Dividend Yield

Dividend Payments With $100K





















What Is a Portfolio Dividend Yield?

While the example above mentioned your dividend investment in one company, investors typically invest in numerous companies. This practice is known as diversification, meaning investors spread their money across a host of companies and industries. Diversification prevents you from putting all your eggs in one basket; instead, you give yourself exposure to many sectors, increasing your chances of success.

Diversifying your investments results in a portfolio of shares in…

2024-06-22 17:00:11

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