Sanity Check: Living off dividends : r/financialindependence - Reddit

Dividends are variable so you will need to be able to live with a flexible budget. ... Note however that for the past 20 years or so, "growth" stocks (netflix, amazon, google, facebook, tesla, etc., …

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Road To Financial Independence: Analyzing A 15-Year Dividend

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All that matters is total return. 10% total return consisting of 8% gains & 2% dividends is better than 8% total return which is 4% gains and 4% dividends. On a related note SPY & QQQ are …

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FAQs about Sanity Check: Living off dividends : r/financialindependence - Reddit Coupon?

What happens if you don't reinvest a dividend?

For example: A stock is worth $100 a share and has a 4% yield and pays a dividend once a quarter. The night before the dividend is paid the value of the stock drops $1 and that morning the stock is now valued at $99 a share. If you don't reinvest the dividend you now have $1 in cash and a stock selling for $99 a share. ...

What is Reddit financial independence?

Reddit, Inc. © 2024. All rights reserved. This is a place for people who are or want to become Financially Independent (FI), which means not having to work for money. Financial Independence is closely related to the concept of Early Retirement/Retiring Early (RE) - quitting your job/career and pursuing other activities with your time. ...

What is a dividend & how does it work?

A dividend is the distribution of some of a company's earnings to a class of its shareholders, as determined by its board of directors. Common shareholders of dividend-paying companies are typically eligible as long as they own the stock before the ex-dividend date. Dividends may be paid out as cash or in the form of additional stock. ...

Are taxes legal in R/dividends?

The question of taxes often comes up a lot in investing communities, and r/dividends is no exception. However, we mods prohibit direct questions regarding taxes and other questions of legality because nobody here is a licensed tax professional in every single tax jurisdiction on Earth. ...

How much dividend should you pay a year?

$1.20 yearly dividend on a $40 stock is a 3% yield. So if you had $1,000,000 worth of that stock, you would receive $30,000 a year in dividends (not accounting for taxes, etc). One advantage to holding a dividend paying stock instead of putting that same money in a savings account is the opportunity for stock appreciation as well (I.e. ...

What is a dividend yield?

According to Investopedia: The dividend yield, expressed as a percentage, is a financial ratio (dividend/price) that shows how much a company pays out in dividends each year relative to its stock price. ...