Dividend Income is that passive income which can help you big time for your after retirement income. If the dividend income is such that you can get 10% of your monthly expense from it then you can reduce the retirement corpus big time and that's why I continue to invest in dividend paying company. I keep a mix of growth stocks as well as dividend paying company to get the best of both worlds.
In August, I have got around Rs 948 as dividend which is somewhat good. In the last year I have got around Rs 4K and I am thinking of increasing it to Rs 6K by next year. And then slowly and steadily more and more income can be generated from it. So by the time I retire, the dividend can help me big time. For example, my father gets around Rs 40K per year as dividend income I.e. around Rs 3.2K per month which helps him to use it for some of his expenses.
And I am thinking of atleast getting to that point which can help me for my monthly rent and thus one less expense my way. But the dividend range around 2 to 5% so that means you need a good amount of money invested in the dividend stocks to get that dividend. And that's why I am actually trying to diversify the dividend income too. I am actually trying to invest in the indican stocks, SCHD - US Dividend paying ETF and the stable coins mainly HBD. And when I have this combination which can give me around 7 to 8% then it's great too.
So that means if someone have invested around 10 Lakh in the combination of these things, then one can expect around 75K per year or Rs 6K per month. And that'd totally passive income and it will continue to grow in the future too.
Posted Using INLEO