How To Make $3,000/Month In Dividends With Only $25/Week 💰

$25 per week may not seem like it's going to pack that much of a punch but if you were to invest that amount every single week over time you could find yourself with a pretty killer stream of passive dividend income in this video I'm going to show you how you can take that $25 per week and turn it into $33,000 per month in dividend income and we'll look at a few different ways you can go about doing this for the best long-term results because that's what it's really all about you're doing this to build long-term

wealth now the thing about investing is that there is more than one way to skin the cat and so throughout the video we'll be looking at a few different approaches one where you'd have a low starting dividend yield but would benefit from a substantial amount of dividend growth another that is the opposite where you'd have a high starting dividend yield but low dividend growth and the third approach will be somewhat of a balance between the first two and let me know in the comments below which approach you prefer to take in your pursuit of passive

income High dividend yield versus high dividend growth tends to be a trade-off between dividend income today or more dividend income tomorrow so I'd be curious to hear which approach you more partial to [Music] now with this first approach while you're starting yield may be on the lower side like somewhere in the range of 1 to 3% which actually is a pretty normal yield for dividend pay companies typically we consider anything above about 4% to be high yield but anyway in this instance although you'd have a low starting yield the dividend growth rate should more than

make up for that overtime and will create an incredibly impactful compounding effect that will cause your dividend income to grow at an exponential rate over the years and this is what is referred to as the dividend Snowball Effect learning about this was one of the things that first got me really excited about investing and this is how it works so when a stock pays you a dividend you have a choice you can either pocket that cash or reinvest it back into your portfolio to go and buy more stocks and if you choose to reinvest your

dividends which you should then you'll end up owning more shares of the stocks that you're buying and when you own more shares you'll receive more dividends in the future now as the companies you own continue to grow and prosper they're likely to increase their dividends over time at least as is the Hope and when this happens not only are you reinvesting dividends to buy more shares which will increase your dividend payments but those Shares are also generating a higher amount of income as time goes on and the longer you do this the bigger the snowball

gets and the more wealth and passive income it can generate for you as the investor having said that a company can only maintain consistent dividend growth throughout the years if they continue to grow their earnings and fortunately for us there are quite a handful of reliable and established companies out there with a successful track record of doing this like Microsoft JP Morgan apple and Proctor and Gamble which are all fantastic companies to own and can easily be bought together as a package deal through something like dgro the I shares core dividend growth ETF in total

dgro contains over 400 different dividend growth stocks and as we scroll through the list of Holdings here we'll see some very recognizable names in addition to the few we already mentioned this is a really solid fund that has actually just barely outperformed the S&P 500 over the last 10 years now the big question is if you invested $25 per week into dgro which has a 2.4% dividend yield and a 10% average dividend growth rate over the last 5 years how long would it take to be generating $3,000 per month in dividend income well for starters

if you began with an initial investment of $1,000 just to reach a point where you were generating $11,000 of dividend income every month it would take you about 29 years which is a long time I know guys but remember we're only investing $25 per week that's not a huge amount of money in so of course it's going to take a long time to build out your portfolio this wasn't going to happen overnight but anyway from there the growth does come quicker and to reach a point where you were generating $2,000 every month it would take

you 34 years so only five more years to double your income and then finally 3 more years later so after about 37 years of investing $25 per week you would be generating $3,000 of dividend income every single month so obviously that took a pretty long time you know if you started investing when you were 20 years old you would be 57 s by the time you were generating that amount of dividend income which is probably not what you wanted to hear and I don't blame you for not wanting to wait four decades to be generating

$3,000 per month and I can hear it in the comments already $3,000 won't even get you a Chipotle burrito in 40 years I know guys inflation exists but keep in mind once again this is only $25 per week most of you probably invest more than that and even if you invested $100 per week you could get there a Whole Decade sooner so the more you invest obviously the faster it grows but that aside the the crazy thing is that yes although it would take you nearly three decades to be generating that first $11,000 every month

it would only take you 5 years to double that and then another 3 years to reach the next $11,000 per month which right there is a great example of the power of dividend growth and the almighty Snowball Effect now with the second approach which is basically going to be the inverse of the first approach we're going to keep it simple and just put all of our money into something like jeppy the JP Morgan Equity premium income ETF which at the time of this recording has a near 8% yield and by the way putting all of

your money into jeppy or high yielding investments in general in my opinion is not the best approach in reality this is just for the sake of demonstration and this is all just one big thought experiment it's just for fun to see what these numbers could potentially look like down the road so don't take it as anything more than that but anyway if you invested $25 per week into jeppy starting with an initial $1,000 investment it would take you about4 3 years to generate $3,000 of dividend income every month and this is kind of what I

was talking about earlier a high yield approach versus a high dividend growth approach is essentially a trade-off between more dividend income today versus more dividend income in the future on day one you would have had more dividend income investing in jeppy because the starting yield was just way higher but as we saw in the numbers over a long period of time the income generated with a dividend growth approach can surpass that of a high yield approach so in my opinion it's kind of a no-brainer between these two strategies if you you have a long time

[Music] Horizon now so far we've looked at two opposing strategies to create passive dividend income but what if we combine these two strategies like what if we could come up with a portfolio that had a highish yield as well as a highish dividend growth rate to give us the best of both worlds in theory that sounds like it would be the most ideal right I mean a healthy balance is never a bad thing but let's find out we can use my own portfolio here in this demonstration which I think does offer a healthy balance between

yield and growth with about a 4.1% yield and a 7.6% dividend growth rate and by the way guys that information is from my dividend portfolio tracking spreadsheet which you can start using for free there is a link to download the spreadsheet in the description of the video and I hope you check it out but anyway if you were to invest $25 per week into this portfolio starting with an initial investment of $1,000 it would take you about 36 years to be generating $3,000 per month which is the shortest amount of time across all the different

scenarios we've covered which is cool to see and just to recap the low yield high growth approach would have taken you about 37 years so one year longer and the high yield low growth approach would have taken you 43 years so considerably longer so it looks like if you could somehow come up with a portfolio that offers both a respectable dividend yield as well as a respectable dividend growth rate you will be well on your way to creating that cash flow and if you want to see how I've been able to do it then check

out this next video right over here in this one I'm revealing my entire dividend stock portfolio and I'll show you every single one of my Holdings including the number of shares as well as the gain and loss for each position so click right over here to check that out and I'll see you in the next one