Want $1,000 in Dividend Income? Here's How Much You Have to Invest in ExxonMobil Stock.
Many, if not most, people think that their current income isn't enough. If you're approaching retirement or are in it, more retirement income could help you pay bills and sleep more soundly at night. If you're far from retirement, more income could be used for a host of purposes, including saving for retirement.
Dividend-paying stocks are terrific for generating income -- because they tend to keep sending you cash no matter what the economy is doing, and over time, the stock shares themselves will also grow in value (assuming the underlying companies are healthy and growing). So let's look at energy giant ExxonMobil (NYSE: XOM), recently with a market value topping $500 billion.
ExxonMobil's dividend is currently $0.95 per share each quarter, or $3.80 per share for the year. It has been increased roughly annually in recent years, at an average annual rate of 1.77% over the past five years, so future payouts could be a bit higher. Let's assume that you're looking for $1,000 in dividend income annually. We'll assume a $3.80 annual dividend for ExxonMobil. How many shares will you need to buy? Well, with the stock's recent price of $115, its dividend yield was 3.3%. So to receive $1,000 in dividends, you'd need to buy 263 shares at that $115 -- for a total investment of around $30,250.
Source Fool.com
