How A lot to Make investments to Get $500 in Dividends Each Month

The attract of an everyday dividend examine dropping into your account each month is undeniably interesting. Think about that dependable stream of passive earnings effortlessly supplementing your monetary wants.

However, like all good issues on the planet of finance, there are constraints and concerns. For starters, the vast majority of dividend-paying shares distribute their rewards solely as soon as 1 / 4.

Furthermore, inserting all of your passive earnings hopes on a single inventory, or perhaps a handful, generally is a dangerous gamble. Market fluctuations, company-specific points, or broader financial challenges can dent your dividend goals.

At present, I’ll highlight three exchange-traded fund (ETF) choices that not solely distribute dividends on a month-to-month foundation but additionally boast above-average yields: actual property funding trusts (REITs), a group of stable Canadian dividend shares, and an attention-grabbing play involving lined calls on Canadian banks.

Prepared to seek out out simply how a lot it’s good to put money into every to attain that coveted $500 month-to-month dividend? Maintain studying to seek out out. Needless to say these calculations are an approximation and don’t account for the impact of potential taxes and buying and selling prices.

REIT ETF

My choose right here is BMO Equal Weight REITs Index ETF (TSX:ZRE). This ETF holds 22 Canadian REITs in equal allocations and pays out a 5.53% annualized distribution yield as of September 30, 2023.

To obtain round $500 each month in dividends from ZRE, an investor must make investments $108,600.25, assuming the present month-to-month payout and share value as of October 6, 2023, stays constant:

Dividend ETF

My choose right here is BMO Canadian Dividend ETF (TSX:ZDV). This ETF holds 52 Canadian dividend shares weighted by yield and pays out a 4.62% annualized distribution yield as of September 30, 2023.

To obtain round $500 each month in dividends from ZDV, an investor must make investments $127,716.84, assuming the present month-to-month payout and share value as of October 6, 2023, stays constant:

Lined name ETF

My choose right here is BMO Lined Name Canadian Banks ETF (TSX:ZWB). At current, this ETF holds all six huge Canadian financial institution shares in equal weights with a lined name overlay to generate earnings and pays out a 7.93% annualized distribution yield as of September 30, 2023.

To obtain round $500 each month in dividends from ZWB, an investor must make investments $67,797.09, assuming the present month-to-month payout and share value as of October 6, 2023, stays constant: