Topic: What balance is required to earn $636.75 in monthly dividends (Read 266 times)

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A convenient investment mechanism is a cross-border, cryptocurrency-based business. What distinguishes it from other similar projects is that it is not based on the approach "you give money, we will build a business later", but on a working business that, through investments, expands the area of planting new areas of vegetables. Grown on open land and in greenhouses

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They're different kinds of investments, but it's impossible not to see some similarities. None of them guarantee to yield profits, even though history has proven that Bitcoin always recovers. The S&P 500 index also shows similarities with Bitcoin's chart, but does that guarantee that it'll keep increasing in value forever? The exact same thing applies to Bitcoin. As you've said, Bitcoin is likely to pay off in a few years; stocks of reputable companies will also do that but also provide you with a steady flow of income throughout the year.

Why do you think they are two totally different things? Bitcoin (or crypto in general) is sort of like crypto, I wouldn't say they are completely the same thing but they are far more than two different things, they have a ton of similar stuff not just some, plus staking is exactly like dividends, you get a staking reward, or you get a dividend when you hold stocks.

I think if you end up buying some tokens or coins, and stake it to make some money, you could even get a better return than these stocks as well, which is why I think its such an important and lovely thing, because otherwise it would have been something a lot less wonderful to go with stocks.

If they are completely different, how do they share some similarities?

Since both are investments, it's always possible to trace a parallel. Bitcoin may take a long time, but history shows us it pays off.

Bitcoin will reward you at once (on the moment of the sale), while stocks will pay dividends gradually, and also reward you on the moment of the sale, although increasement potential of bitcoin is much superior.

If we think about guarantees in order to only invest our money on what is certain, we aren't going to reach any conclusions and will end not investing in anything at all, because every investments have risks.

Comparing two completely different things is pointless. You can't compare staking with dividends, nor stocks with Bitcoin. While they do share some similarities, they are completely different things. On top of that, there's never a guarantee, neither in receiving dividends nor from staking awards, since the market is quite volatile in both cases and the returns may vary. Bitcoin also isn't a comparable investment; it's an asset that doesn't yield steady returns. You're claiming that it doesn't require too much effort, but results aren't guaranteed either, while it may take years to pay off.

It's still a risky investment which won't guarantee stable income along the time. It depends a lot on the currently moment and tendency of the economy. Investors have to be active watching their assets, because at some point it might be necessary to sell them in order to invest in another tendency. Few assets have solid and constant returns on long term and these aren't highly profitable, anyway.

Thinking this way, bitcoin doesn't look a bad idea, because you don't need to spend a lot of your time on it. You just acquire your coins and keep them held at a safe wallet, and that is all. No hurries are needed. The only cons is the passive income aspect, although the profitability on long run must overcome any passive income assets' investments offer.

Cryptocurrency staking doesn't guarantee you a fixed APY as it constantly fluctuates. For instance, even the fixed APYs that Binance was offering were reduced after their expiration dates. I'm also a bit disappointed regarding the APYs that are offered through staking now. Stocks that pay dividends are a great way to earn a semi-passive income, but you also need to track your portfolio; stocks aren't to be left without monitoring. I was actually considering investing in a company by purchasing a few shares in order to generate a small passive income from them as well as sell them when the market situation improves.

Exactly. Picking out the right stocks for dividends is really important. But what happens when a business decides that the dividends need to be slashed? Its impossible to predict, just like its nearly impossible to predict a good stock with 100% accuracy. So it might be a fools errand to expect yourself to do as well as Warren Buffet did with coca cola. He just got lucky. And even then the dividend game takes years. It took him 35 years to earn those dividends. If he invested in Bitcoin during one of many times in the past when the price was low, it would have taken him less than a year.

Intel may have slashed their dividends, but that "should" increase the value of the stock as well. If you have a billion dollars in profit, you either spread that around to stock holders as dividends and they make money right then there, or you reinvest that back into the company to grow and people would hold stocks that have one billion dollars more in the cashflow. If they didn't give out dividends AND didn't go up that much in the price, then that is the real problem they are facing.

I really like dividend paying stocks, but if they are not as good then we shouldn't even consider it, just buy stocks that are high level blue chip and you should be fine.

We should not forget the inflation rate to calculate into this as well. Even though it's true that 10% would be good enough in most cases, we have seen inflation rise enough that it was basically not an increase even when you got 10%, certainly lost money in some cases if it was under that. In my nation, banks offer less than the inflation rate for example, a terrible thing and yet people who are afraid of any other investment still buy into that.

Or stocks with dividends that are 10% or lower may not be great, if the inflation is high. So all in all this is good, but I still rather stick with bitcoin which could go a lot higher than most stock dividend returns.

The problem with this is that they are mostly overvalued and pays like 2% of dividend which is way under inflation. The fact that they performed well in the past does not imply that it will perform well in the future. Generally speaking, investing in good dividend companies is one of the best solutions, however, I warn against too high expectations. The purpose of such investing is to secure capital, not to achieve wealth. With this approach, it will be easier to look at a position that brings mediocre profits for few years.

Here is the issue with dividend stocks. They won’t always pay out the same dividend like people assume. Look what intel did a couple of weeks back. They slashed their dividend by like 60% or so. You would be better off putting that money in a bond.

Then there is the issue of the actual stock going down. What good is 10% dividend if the stock itself lost 50% value. It’s not as risk free as many people assume it to be.

I stand to be corrected, I've and read it from those quotes and inspiring images that they're quoting it from Warren Buffett so it made me believed that it originated from Warren Buffett.

But then with my research as you've asked it, you're correct it originally come from Albert Einstein. Damn, these inspirational quotations that they've misled me.

It will start from that goal of 'high' on the description. That's what the scammers are using and attaching it with 'passive income'. In reality, most legitimate investments don't offer a lot of interest and it's lesser risk. But due to the nature of human that wants to earn more, scammers take advantage of it.

Good take. A better strategy with dividend growth investing seems to be picking the strong and healthy companies that yield ±3%, then just wait for that yield to compound and the company to grow — slowly but surely.

It is the other way around, in fact. With a few exceptions, if you want to buy stocks and hold them for life, you'd better look for those that pay around 3% yield. The exception is that a particular company may be undervalued at the moment and give a higher yield. I also depend a bit on the sector; for REITs, the best at the moment is Realty Income, which pays around 5%. Getting into REITs that pay more than 10% is entering the risk zone, as high yields usually indicate problems in the company, which ends up cutting or suspending the dividend, or with a considerable loss of value.

Yes, the situation is now much more difficult because of inflation and economic instability, also because of the fear of bankruptcy of companies. People are afraid of investments that give high yields because they generally think that there is a trick.

The situation in Crypto is much more difficult due to the spread of scam investment projects on a large scale, so it is not easy to obtain a good credibility investment project with a high passive income.

I truly get your point. But what I just meant was the fact that dividend growth investing isn't simply just picking the stocks/REITs that produce the highest yield then you pretty much leave it forever. It's simply just a lot more complicated than that.

There are some who are just buying stocks that gives higher dividends, and forgetting about the company itself. On the other hand, there are some who are doing a thorough research on this dividend-paying stocks that even though they are giving lower dividends, they surely are a better company. Warren Buffett is one of the reason why I switched to dividend investing, and I've already set my goal this year with regards to dividend investing particularly into stocks.

It's just amazing how he is earning 56% of his total investment in Coca-cola annually, and that's only from one stock. He owns some other stocks that are paying dividends to him as well. It's kind of ironic though that he is invested heavily to some dividend-paying stocks, but his company Berkshire Hathaway aren't giving dividends to their shareholders.

Correct me, but is it Warren Buffett who said that and not Albert Einstein?

In our country, REIT's are paying us on a quarterly basis, and just last year, I think the lowest amount of dividends a REIT has given to it's shareholders is at around 7-8%. Well, that 13% annually is already a huge one knowing that they are paying the shareholders either monthly or quarterly. If you really want a continuous cash flow on a yearly basis, REIT's is a way to go since the company will always pay the stock holders.

Yeah but the thing is, if the whole market is down simply because people aren't buying stocks and not because business for dividend-paying companies is bad, the dividend yield is higher.  When there's a soaring bull market and stocks are waaaay overvalued, yields are lower--assuming companies aren't jacking up their payouts.  And I'm also a big fan of this investment strategy, and I used to have a pretty nice portfolio of stocks (including Coca-Cola, thanks Warren Buffett).  Unfortunately, I had to sell off much of what I had.

By the way, REIT stocks generally pay very high dividends, and some of them pay monthly.  I didn't watch that video so I don't know if any of them were mentioned, but I've had a hard-on for a few of them for years.  One that I own pays something like 13% annually, which is a hell of a lot better than Coca-Cola or pretty much any stock in the Dow or even S&P 500.

Warren Buffett even said that compounding interest is the 8th wonder of the world. And having a good amount of interest and dividends from the stocks will require you decent amount of stock and capital.

As pointed out about the inflation, the interest should even be greater to at least defeat and cope up with it.

Many are still not yet educated about beating inflation and compounding interest is one of it but still, the percentage differs from time to time or annually.

The dividend can sometimes be misleading, and as Tytanowy Janusz has pointed out


However, dividend investing usually pays off if you know what you are doing. It is about choosing solid companies that you understand their business model and that have a long history of paying dividends and a minimum of 10 years of dividend increases. If you pick 20 companies like JNJ, P&G, O and others like that, maybe after 20 years some of them will have stopped dividend growth or even suspended it but you will easily have 18 that will not only have continued to increase the dividend payment every year but also the share price will have risen considerably as well.

1- these days, a 7% APY can barely break even with high inflation eating up all that profit. But you have to pay tax from 7% profit anyway  XD
2- high dividend stocks are not always good. NOBL (most popular ETF with SP500 dividend aristocrats) pay 1.9% in dividend. If some stocks can pay 7%, 10%, most often there is a reason why investors avoid it. It may be irregular payments or the current high dividend is caused, for example, by a temporary increase in the price of raw materials. It will come back down together with company profits. Perhaps the company is located in a country threatened by its neighbors. Meybe there is a corruption and high crime in the country. Maybe the new tax rules that insiders know about will drive margins down in the future. Maybe there is a thriving competition in the area, quite by chance related to the government of the country. We don't know it but mostly there is a reason for too high apy.
3- there are many examples of companies paying dividends and not making profits. these companies go into debt to keep their payments going (to become a dividend aristocrat or stay in this group). If it doesn't work out well, you can invest a future bankrupt.
4- too high dividend in relation to profits may indicate that the company has nothing to invest in. Which may lead to a collapse of profits in the future and an outflow of capital (decrease in the price) and a real loss. (and you will pay tax on each dividend anyway )

So be carrefour. 2% dividend on good stock is better than 7% on future bankrupt but both will give you a real loss when inflation is at 10%. So now the game is to keep the purchasing power of your money for as long as possible, not to "retire early".

Compound interest or in general collecting money from money is a good idea, but the easier it is to collect money in this way and for a short period of time, the worse it is for the economy. High interest stifles innovation and makes capital cowardly. Instead of investing in development, agricultural or economic projects, you freeze your money and aspire Others default on payments, and thus you earn more, but you will reach a stage where individuals are unable to pay, and the economy will stop.

So increasing it is not a good thing.

Crypto staking gives you a fixed IRR but investing in dividend stocks give you varied returns over a period of time. I am always in favor of getting the best of both worlds. That's why my monthly investments are divided between crypto, stocks, mutual funds, Paper gold and insurance payments. So when one sector goes down, the other sectors can support my investment.

There is a trick to pick up good dividend paying stocks. From the exchange data, see the companies where they have stakes from government. Government invests in companies for dividend income. So when you will see investment from government, go ahead and buy them. Dividends will be guaranteed!

Investing in dividend-yielding stocks can definitely be a great move, but people forget that they need to actually pick ones that will end up performing well business-wise. Having stocks that give great dividend yield doesn't mean crap if the stock price is on a downtrend and if the business is slowly but surely dying.

This is something that Warren Buffett did pretty well with Coca-Cola: https://twitter.com/DividendGrowth/status/1630613809839718400

I like your conclusion on this topic, people should not use a certain stock/shares to judge what a dividend would be in the long run. A lot can change, and as you have rightly concluded, those that had almost-certain plans about some shares and their dividends on it are changing it now because there are many factors to consider which are beyond the companies themselves.

The old/present performance of any company can't be the indication of future performance, so everyone holding a share is taking a risk, with no guaranteed dividend whatsoever.

Good content.   ^

This type of stock dividend strategy could be the closest thing to crypto staking in equity investments.

IMO its an excellent method of earning passive income. Which relies heavily upon compounding interest. The catch is, like most investment strategies it performs best under bull market conditions when averages are rising. The opposite of our current bear market.



Image link:  https://i.imgur.com/kgzTlED.jpg

The chart he displays @ timestamp 13:37 (above image) illustrates the long term earning potential of long term compounding interest with dividend stocks.

In previous years of low inflation and economic stability, many americans were able to leverage this type of long term compounding interest to retire early. Unfortunately things are much harder now.