How Much to Invest to Make $500 a Month in Dividends
To make $500 a month in dividends you need roughly $150,000 invested at a 4% yield — that's $6,000of dividend income a year. The exact figure depends on the yield you target. Here's the full breakdown, plus a calculator to map your own path there.
Capital needed for $500/month at different yields
| Dividend Yield | Portfolio Needed |
|---|---|
| 3% | $200,000 |
| 3.5% | $171,429 |
| 4% | $150,000 |
| 4.5% | $133,333 |
| 5% | $120,000 |
| 6% | $100,000 |
Plan your path to $500/month
You don't need the full $150,000 up front. Set your contribution and yield to see how many years it takes to reach $500/month with dividends reinvested.
To earn $500/month ($6,000/yr) at a 4% yield, you need a portfolio of:
$150,000
Contributing $500/month with dividends reinvested, starting from $10,000:
You'd reach $500/month in about 16 years.
Assumes the dividend is reinvested annually and the yield stays constant. Illustrative only.
Other dividend income goals
$500 a Month in Dividends — FAQ
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