Making Money Off Dividends Is Easier Than You Think
Today I will review the steps required, so you will know how to make $3,000 a month in dividends.
No delays. Let’s do it.
How to Make $3,000 a Month in Dividends
Successful long-term dividend investors follow these steps to earn consistent monthly dividend income:
- Start the journey
- Live on less and save the rest
- Pick quality dividend stocks
Next, please allow me to explain my thinking behind each one of these steps. And before wrapping up, I will address several frequently asked questions about making $3,000 a month in dividends.
Need Easy & Extra $300/Mo For Free?
Free Cash: Get paid for taking surveys & testing apps.
Ysense: Earn up to $100 on completing your first month surevies.
Paid surveys by Survimo: Paid over 35 Million. Earn up to $25 per survey
1. Start your dividend journey now to put as much time as possible on your side.
First off, let me emphasize that making $3,000 per month off dividends is a challenging goal.
Can you do it? Absolutely. You won’t be the first or last to do so.
It will take a long time for most people, so start now if you haven’t already. However, as time passes, your progress will accelerate as the magic of compounding dividends works wonders.
The great thing about dividend investing is that you only need several things to be successful:
- Time
- Money
- A brokerage account
- Good dividend stocks
If you still need to get a brokerage account, open one now. I like using the fast, powerful Webull app. You can open a Webull account here
and, for a limited time, get free stock for doing so.
I will talk about good stocks that pay dividends in a moment, but first, let’s address the big elephant in the room, specifically, money.
Read – 25 Unique Cash App Names ($Cashtags) For Everyone in 2024
2. Live below your means and put aside your savings.
It takes money to invest in dividend stocks. And unfortunately, there is no way to get around it.
I don’t care if it’s just $5 a day. And I don’t care how you do it. Thus, you must save money to invest in your dividend stocks and build your portfolio.
So, look at your budget and see where to reduce your expenses, for example:
- Work from home
- Brown bag lunch
- Eliminate a streaming service
- Reduce dining out
- Save on your online purchases
- Defer a purchase
- Get a side hustle
To sum up, make some lifestyle sacrifices to live below your means. And once you do, put aside the excess money in your brokerage account.
Furthermore, you may need an efficient tool to manage your spending, budget, and total financial picture.
Okay, I have addressed time, money, and your brokerage account. Next, let’s talk about dividend stocks.
3. Find, research, and pick high-quality dividend stocks.
I invest in stocks with long-term track records of paying rising dividends, also called dividend growth stocks. There are many ways to find and select good dividend-growth stocks. Here are my suggestions:
Pro-tip for step #3: Learn dividend investing basics.
First, learn as much as you can about dividend investing. I like the financial freedom investing course offered by Simply Investing.
The more you know, the better you get at picking your stocks. Whether you take the course or not, become familiar with essential dividend metrics like the following:
- The dividend yield
- Annual dividend rate per share
- The dividend payout ratio
Pro-tip for step #3: Develop a watch list of dividend stocks you would like to own.
Next, identify stocks with long and rich dividend payment histories. For this, I love the list of Dividend Kings and Dividend Aristocrats.
Kings and Aristocrats have paid uninterrupted dividends annually and have increased their dividend rates per share yearly for long periods.
Pro-tip for step #3: Learn what other dividend investors are doing and why.
Third, analyze what other dividend investors are doing with their investments. Figure out what stocks they hold and why.
There are several ways to go about looking at other investors’ stocks.
First, check out the stock holdings in the best dividend-paying index funds.
Find an investment buddy or join an investing club.Next, making $3,000 a month in dividends means you should pay attention to when your stocks pay their dividends.