How much should I invest to have a $1000 dividend payout every month?

Asked 4 years ago

My goal is to receive $1000 monthly dividends. How much can I expect to invest to get that kind of return? Any advice on what strategies I can use?

Dividend investing Date of dividend payment Dividend capture strategy

Andia Rispah Igobwa

Tuesday, July 06, 2021

Setting aside $1000 every month with an interest rate of 3% would require a monthly deposit into the investment bank account of approximately $2400.
So to have dividends totaling at least $1,000 per month you will need to invest approximately the equivalent of 4 months' worth of deposits ($4,000) over 12 months. 
If it is more convenient for you to put money in your savings account weekly instead of monthly, then that calculation changes and becomes $6667 over 1 year saved up in total dividing it between quarterly checks. 
However, these numbers are not a guarantee and only represent putting money away for 10-20 years with constant withdrawal rates that will give back more than 300% on your investment; which is unlikely unless you are starting with a large sum of money.