Asked by Anonymous

Is it possible to live off of dividends?

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    • Guo Hao Teo
      Guo Hao Teo
      15 Answers, 32 Upvotes
      Answered 3w ago

      Yes this is possible. just simply work backwards:

      • understand how much you will need to survive (varies from singles to families)
      • plan out how much is a realistic return for dividend yield
      • most likey around 5 - 7% p.a
      • create a diversified enough portfolio for that amount

      Done. You can actually do this and i have friends also doing things like that in their 40s. By right they have no real need to work

      Only thing is to manage your cashflow well as dividends can be quarterly or yearly.

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    • Yong Kah Hwee
      Yong Kah Hwee

      Top Contributor (Feb)

      526 Answers, 707 Upvotes
      Answered 3w ago

      I would think yes. Assuming you need $4000 a month to live on, and you can get dividends at 5% consistently. You'll need a capital of $960,000. Quite a huge sum, but 5% is a conservative assumption!

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    HC Tang
    HC Tang, Financial Enthusiast, Budgeting at The Society
    374 Answers, 896 Upvotes
    01 Mar 2019

    Certainly. But you still have to manage them from time to time as nothing remains the same forever.

    See this by Seedly , all the calculations and summary there:

    https://blog.seedly.sg/dividend-investing-how-much-you-need-to-invest-passive-income/

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