Monthly Dividends Math

[finances5]

Hi,

I'm trying to figure out how to do the math here. Whereas each 12 stocks pay their dividends quarterly. And am snipping out the specific stock info in this post.

January

Stock #1:

Its dividend payments are made in January, April, July and October for a total payout of $3.20 this year, or $0.80 per quarter.

February

Stock #2:

Its dividend payments are made in February, May, August and November for a total of $2.24 in 2016, or $0.56 per quarter.

March

Stock #3:

Its dividend payments are made in March, June, September and December for a total of $2.16, or $0.54 per quarter.

April

Stock #4:

Its dividend payments are made in April, July, October and December for a total of $1.72, or $0.43 per quarter.

May

Stock #5:

Its dividend payments are made in February, May, August and November for a total of $3.20, or $0.80 per quarter.

June

Stock #6:

Its dividend payments are made in March, June, September and November for a total of $1.40, or $0.35 per quarter.

July

Stock #7:

Its dividend payments are made in January, April, July and October for a total of $2.68, or $0.67 per quarter.

August

Stock #8:

Its dividend payments are made in February, May, August and November for a total of $3.00, or $0.75 per quarter.

September

Stock #9:

Its dividend payments are made in March, June, September and December for a total of $3.68, or $0.92 per quarter.

October

Stock #10:

Its dividend payments are made in January, April, July and October for a total of $1.56, or $0.39 per quarter.

November

Stock #11:

Its dividend payments are made in February, May, August and November for a total of $3.56, or $0.89 per quarter.

December

Stock #12:

Its dividend payments are made in March, May, August and December for a total of $2, or $0.50 per quarter.

The above dividend payments total from all 12 stocks is $30.40.

And this where I'm trying to figure out the math. It also says that if you invest in $10,000 in each position, the dividend total would be $3,472. How did they come into that calculation?

I'd appreciate it. Thanks in advance!

 

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[G-Man]

• It's impossible to answer this question without the price of each underlying, unless you have the yield, and then between the yield and dividend amount you could back into the underlying price
• If solving a problem like this isn't pretty intuitive to you, you should probably learn more about basic finance before putting money in the market.

 

[458]

34%? You trolling me bro?

 

[freedom2]

It's 2.9 % - 3472/120000. The total investment is 12 * 10000.

In the first part, each dividend amount is per single share. If you invest 10k in each company, then you will have a different number of shares. Does this explain the discrepancy between 30.40 and 3472?

 

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[MidwestLandlord]

It's 2.9 % - 3472/120000. The total investment is 12 * 10000.

In the first part, each dividend amount is per single share. If you invest 10k in each company, then you will have a different number of shares. Does this explain the discrepancy between 30.40 and 3472?

If my math is right, and you reinvest the 2.9% return with a $120,000 initial investment, you'd be a millionaire in about 75 years.

75 years + my age of 35 years = dead.

At any rate #1, I don't have any stocks that are currently yielding less than 4% dividends. 2.9%?!?

At any rate #2, in my opinion stocks are for preserving wealth only...unless you have INSIDERS info.

 

[freedom2]

I agree, 2.9 % is not an "exciting" dividend yield, but it's not uncommon for Dividend Aristocrats (25+ years of growing dividends). Johnson & Johnson (JNJ) for example has a current yield of 2.8 %. (Stock number 5 could be JNJ, based on the dividend and cycle.)

Like you, I'm also aiming for a minimum yield of 4 %.