dividends and interest payments?

Question

how much money would you have to have invested in stocks to get interest payments of 50 to 60 thousand a year? just a ball park number. Lets say you had stock in Washington Mutual or/Bank of America/ public storage? commerical real estate

stocks dont but annuities do

Answer 1

A sharp invester could do that with half a mil.

Start taking the newspapers and magazines. Don't ignore other investments like precious metals, comodities, 2nd trust deeds, etc... Pay attention to international opportunities too.

Answer 2

It varies depending on how large the dividend of the stock is. As an example, right now Bank of America is paying $2.56/year in dividend per share and one share costs $43.15. That's a yield of about 5.93% (2.56/43.15). To find out how much you need to invest to get $50,000 per year in dividend payments, just divide $50,000 by .0593 (5.93% as a decimal) to get $843170.32.

You can do the same calculations using the dividend amount and share price for any stock.

There are a few key things to be aware of, though:
1) If you invest in a company that's doing well, they will likely increase the amount of their dividend each year, so even if you don't buy any more stock, you'll get more in dividends in future years.
2) The price of stocks varies, sometimes dramatically, but in the long run, the price of stocks generally goes up. So, in addition to the dividend income, you'll also get the benefit of capital gains (the increase in value of the stock about what you bought it for). If you include both dividends and capital gains, the historical long-term rate of return is 10% or a bit more on average. At 10%, that would only require $500,000 invested to get back $50,000 per year, but only the dividend portion is reasonably assured, so if you're planning to live off that income, you can't count on the capital gains.
3) Investing all or most of your money in a single stock (or even a few stocks) is very risky. If that company goes bad (remember Enron, WorldCom, etc), your whole investment can be wiped out. It's much safer to diversify your investment across many stocks in many different industries. A mutual fund based on an index like the S&P 500 or Russell 2000 is good for this purpose, but the dividend rate will be lower since they include companies that pay little or no dividends as well as some paying high dividends.

Answer 3

Stocks don't pay interest.

Answer 4

depends on how high a dividend they pay out.