Want $1,000 in Dividend Income? Here's How Much You Have to Invest in Bank of America Stock
Are you looking for a particular amount of recurring dividend income? Maybe you've got ongoing bills to pay from your retirement savings? Whatever the case, Bank of America (NYSE: BAC) is a compelling way to generate reliable cash flow from your investments.
BofA stock currently boasts a dividend yield of just under 2.5%. If you needed $1,000 worth of annual dividend income, a $40,816 investment in Bank of America right now would produce this amount of cash in a year. If you need that amount of income on a quarterly or monthly basis, the required investment is ratcheted up to $163,265 and nearly $490,000, respectively.
That's a pretty large chunk of change for what's not a great deal of dividend income. There are certainly higher-yielding dividend stocks out there. What BofA lacks in total yield, however, it makes up for in reliable dividend growth and capital appreciation. Ever since finally and fully shrugging off the effect of 2008's subprime mortgage meltdown in 2016, the U.S.'s second-biggest bank has been steadily raising its per-share dividend payment. It's grown at an annualized pace of 25% since that time.
Source Fool.com
