While doing some research to boost my monthly cash flow from dividends, I discovered something truly amazing. I'm ashamed to admit that I never considered it before, since I have been investing for many years now. However, here it is. I found out that I can replace the money I earn in a years time at my current job for a total investment of just under $140,000. To do this I would only need purchase 2,000 shares each of 3 dividend stocks that pay in different quarters. The average dividend income per month would be roughly equal to what I currently earn at work.
Why is this so exciting to me? Because even though I'm working for a lot less than I'm used to making in this down economy, I've been managing quite well. Not only am I paying all my bills ahead of time, I add to my investment portfolio every month as well. On top of that, I've always estimated that I would need anywhere from a quarter to half a million dollars to retire comfortably. Now I've come to the realization that I can retire on a whole lot less than I thought and possibly years earlier than I expected.
I've revised my automatic investment plan to include my new discovery. The greatest thing of all is that I already own shares in all three companies, so I need only increase my stake to 1,000 shares each. While I don't have enough cash to buy the entire 6,000 shares, I'll be diverting dividends and capital gains from my other holdings to speed up the process until I reach my goal. In the mean time, I should benefit from ever increasing monthly dividend income as my stake in the 3 companies rise.
Sunday, September 19, 2010
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