Is it possible to live off of dividends? - Seedly
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Asked by Anonymous

Asked on 28 Feb 2019

Is it possible to live off of dividends?

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Guo Hao Teo
Guo Hao Teo
Level 4. Prodigy
Updated on 09 Jun 2019

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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Shih Tzu Man
Shih Tzu Man

on 13 Mar 2019

Very good answer
Heng Kai Le
Heng Kai Le

on 09 Jun 2019

V clear roadmap!
Yong Kah Hwee
Yong Kah Hwee
Level 6. Master
Answered on 28 Feb 2019

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
Level 8. Wizard
Answered on 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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