How to Earn $100/Month in Dividends by Investing Just $11,000 Today

Earning $100 a month is certainly a milestone achievement for a dividend investor. This totals to a respectable $1,200 per annum! Most ‘good’ dividend-paying companies have a yield of around 3% – 5%. But the problem for a beginner investor is, with less capital, these yields are not going to earn you a whole lot of income from dividends.

I have been tracking my dividend investing journey in Canada for a few months now. While I’m quite satisfied with the 6% – 8% average yield on all my investments, you will be able to see that I only earn less than $10/month as of now. So, the journey is quite slow and a test of patience.

If you have an extra $11,000 you are looking to invest, there are a few options. In this article, we are going to explain how to maximize the yield on your investment.

How to make $100/Month in Dividend income with $11,000

Below are the conditions you should follow;

  • Invest $11,000 in the beginning,
  • Invest in a company that pays ~10% dividend yield per annum (paid out monthly),
  • Re-invest the dividend income for one year,
  • Let the investment grow for one year.

The mathematics behind the dividend earning is pretty simple;

MonthTotal InvestmentDividend/month
1$11,000.00$91.67
2$11,091.67$92.43
3$11,184.10$93.20
4$11,277.30$93.98
5$11,371.28$94.76
6$11,466.04$95.55
7$11,561.59$96.35
8$11,657.93$97.15
9$11,755.08$97.96
10$11,853.04$98.78
11$11,951.82$99.60
12$12,051.42$100.43
Total$12,151.84$1,151,.84

Re-investing your dividend income and earning dividend income on the previous month’s dividend income is the fastest way to grow your money if you are a dividend investor. This is called compound investing.

According to the table above, you can see how you will touch $100/month if you carefully screen for high-yield dividend stocks.

The math works. But finding companies of such high yields can be tricky. Fortunately, we have some suggestions for you.

Company (Ticker)Share price (June 22, 2021)Dividend Yield
1. Canoe EIT Income Fund (EIT-UN.TO)$11.9610.03%
2. ARMOUR Residential REIT, Inc. (ARR)$11.4410.49%
3. Dividend 15 Split Corp. (DFN.TO)$8.3914.35%

Keep in mind that these tickers are mere suggestions only. Every investment comes with varying degrees of risk. So, make sure to do your own research before investing your hard-earned money into the stock market.

There are plenty more stocks, split share companies, ETFs, and income funds out there that provide above 10% dividend yields.

adam