How to Make $1,100 From $10,000 With Dividends

By | February 21, 2012


Dividend income is a great source of passive income. For those who don’t know, dividends are payments made by a corporation to its shareholders. If you own enough stock, it is possible to live off this dividend income. I will try to make a hypothetical stock portfolio that produces $1,100 a year in dividend income off of only $10,000. If owning real estate does not really make sense to you because you are debt and tenant adverse, then you will like dividends because they require much less maintenance. Instead of buying one stock, i will create the right mixture of income producing securities in different industries.

This portfolio includes REIT’s, financial stocks, and consumer goods stocks that will generate an average dividend yield of 11%.

Dividend Income Portfolio

85 shares of B&G Foods Inc. (BGS) @ $23.71 = $2,015.35
282 shares of Apollo Investment (AINV) @ $7.10 = $2,002.20
66 shares of American Capital Agency Corp. Reit (AGNC) @ $30.37 = $2,004.42
203 shares of BlackRock Kelso Capital Corporation (BKCC) @ $9.87 = $2,003.61
667 shares of Chimera Invest (CIM) @ $3.00 = $2,001.00

Total Cost: $10,026.58

Dividend Income

B&G Foods Inc. dividend – 85 shares x .44 = $81.66
Apollo Investment dividend – 282 shares x .8 = $225.60
American Capital Agency dividend – 66 shares x 5.00 = $330
BlackRock Kelso dividend – 203 shares x 1.04 = $211.12
Chimera dividend – 667 shares x .45 = $300.15

Total Dividend Income: $1,148.53

Keep in mind that I am not reinvesting dividends since I will use this income for my personal use. If I actually did reinvest these dividends, then my principal amount would increase and I would receive even more in dividend income as I own more stock, so the actual amount would actually be higher. This is just a hypothetical stock allocation ment to show you that you can achieve dividend yields greater than 11% in your portfolio, and I am in no way promoting these particular stocks over others.

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One thought on “How to Make $1,100 From $10,000 With Dividends

  1. Brent Trotter

    How do you know what percentage return you’ll receive on each stock?

    For example, you had $1.04 on Black Rock Kelso, is that guaranteed?

    Also, I don’t know what all of these are but my guess is that this is a semi balanced portfolio. Is that assumption correct?

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