Have you ever desired to have more cash flow? Well I am on a mission to find out what is the best option for anyone interested in learning about cash flow and learning how to build it. Anyone looking to be financially free and cash flow free must begin finding ways to get multiple streams of income. The cash flow from dividends is a vital piece of the puzzle I believe. I think for the sake of making things easy and for comparison options let’s keep the numbers for all the investing options at 1 grand. The examples below are possible dividend figures for folks looking to increase cash flow.
What is the Best Cash Flow Investment:
1 Thousand Invested Options –
The Low price company stock option:
GE – 1000 / $26.53 per Share = 37.69 shares X .22 QTR dividend = $8.29 QTRLY (3.32% Yield)
The Mid-Priced Company Stock option:
TGT -1000 / 58.79 per share = 17 shares x .52 QTR dividend = $8.84 QTRLY (3.54% Yield)
The High price company stock with greater future returns option:
JNJ – 1000 / 100.53 per share = 9.94 shares X.70 QTR dividend = $6.95 QTRLY (2.79% Yield)
The High yielding REIT stock option:
O – 1000 / 43.19 per share = 23.15 shares X .1825 Mthly dividend = $4.22 Mthly X 3 = $12.66 Qrtly (5.05% Yield)
The High Yield Bond Dividend Mutual Fund:
PML – 1000 / 12.09 per share = 82.71 shares X .065 Mthly = $5.37 Mthly X 3= $16.11 Qtrly (6.45% Yield)
The High Yield Telecom Company Stock:
T – 1000 / 35.62 per share=28.07 shares x .46 QTR=$12.91 Qrtly (5.17% Yield)
The Diversified Vanguard ETF:
VTI – 1000 / 97.16 Price=10.29 sharesX.43 QTR = $4.42 Qtr /3= 1.47 mthly (1.78 Yield)
The High Yield Utility Company Stock:
EPB – 1000 / 35.92 price=27.83 shares X .65 =$18.08 Qtr / 3 =6.02 mthly (7.24% Yield)
What do you think about the options listed above? Can you see how easy it is to build cash flow when you have excellent opportunities like the ones listed above. I must state that 4 of the options above have been on the dividend champion list for many years, and thus considered less risky investing options.
After quickly analyzing things, the highest cash flow creator is the Utility company, but it comes with more risk. The medium level cash flow creator is Target and it has a mid-level risk as well. The lowest cash flow creator is the vanguard ETF, and it is less risky, because ETF’s are naturally diversified.
After Analyzing all my funds the Highest Paying Dividend Fund is:
VWESX: $4.00 – 4.50 per month for every $1000 dollar invested with an average yield of around 4.5%. This is a Vanguard Bond Fund. Four (4) dollars might not seem like much but if you have 80 grand invested into this fund that equates to about 3,500 dollars a year of income. If you reinvest this amount every year it will continue to grow. If you never place new contributions into it and reinvest the dividends you will grow the number of shares by 330 per year. Thus it will eventually give you a good income when you are ready to retire.
The secret that really isn’t a secret is to let all your funds reinvest while adding new dollars to the best performing funds you have whether they may be funds that grow substantially in price per share or dividend per share. If you do this I believe the small amounts in the beginning will turn into big amounts later.
I would appreciate it if anyone who reads this can comment on what they get dividend wise per 1 thousand dollar invested in any mutual fund, ETF, Index fund, Bond fund, Stock, Reit, or MLPS. Looking to share the best investment information with all the readers on this site.
Comment if you have another alternative to add to the list?
Let me know what is the Best Cash Flow Investment?
Rich Uncle EL
I'm afraid I would need to do more looking at my investment portfolio to be able to answer your question on what I "get dividend wise per 1 thousand dollar invested in any mutual fund, ETF, Index fund, Bond fund, Stock, Reit, or MLPS" In fact I think I would need to do a lot of calculations. Do you have any tips on how to get this information easily?
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It depends on the type of investment that you want to calculate. But a quick way is to take your annual dividend amount, divide it by 12 to give you a monthly amount, then divide that amount by the number per thousand you have invested. (Divide by 8 if you have 8,000) Let me know if you need further assistance by email.
I've been making it a point to pick out good dividend yielding stocks and ETFs to start building up our investment income. At this point, we aren't worried about the amount (in terms of living off of it right now) since we are simply re-investing it back into our holdings. We will be more concerned with the amount when we actually need it to live off of.
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Very Smart Jon reinvest is the way to go until you actually need it. Can you share a great ETF that pays a good income? Thanks for the comment.
For my individual dividend stocks account, I’m happy to receive an average of 3%. For retirement funds, ETFs, I strive for 1.75%. For REITs, I strive for 5.5%.
But I agree with you, the earlier one starts the better. In addition to the compounding effect, for some stocks and funds, it’s likely the payouts will also continue to increase.
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Cool I like ReITs they have been on a roll lately. Thanks for sharing.
I yield about 3.5% for my taxable account. I have a mix of individual dividend paying stocks and ETFs since that's what feels right for me. I'm working on building a passive income stream through dividend growth investing.
I think dividends is one of the best ways to supplement future retirement income. I keep track of my dividends so that I can see the compounding grow and provide an estimate of future cash I can use to live off.