Is it possible to Pay yourself with dividends? before we go any further, you need to know what a dividend is. A dividend is the distribution of some of a company’s earnings to its shareholders, as determined by the company’s board of directors.
Growing up I didn’t know what dividends were, but when I found out it’s like a light bulb went off in my head. I started to read everything I could find relating to dividends and how I could get involved.
That’s when I came upon the stock market and investing, this is when my career path of becoming an accountant changed to becoming an investor. I started to focus solely on how to pay yourself with dividends.
When you hear the word investing, you think of numbers on a screen that is hard to understand. Investing is simply putting money away now for a higher return in the future.
To start collecting dividends you need to open a brokerage account and start purchasing shares of high-quality dividend-paying stocks.
If possible try to automate this, it will eliminate the chances of you spending the money foolishly. You should be investing a minimum of 10% of your earnings each time you get paid.
The amount of dividends you will receive is dependent upon the number of shares you own. This means that to actually live solely off dividends, you need to invest a lot of money upfront or over a period of time. This figure will be different for each person based on where you live and your expenses or lifestyle.
To answer the question above; “Yes, you can live off dividends.”
My final question to you is, when will you start the process?
