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AT&T Inc. (NYSE:T) has long been a popular choice for income investors, thanks to its generous dividend yield. With a quarterly dividend of $0.2775 per share and a 6.07% yield, AT&T offers an enticing option for those seeking to generate passive income from their investments. But just how many shares of AT&T would you need to own to earn a substantial $500 per month in dividend income?
Let’s crunch the numbers. To earn $500 per month, you would need to generate $6,000 per year in dividend income from your AT&T shares. Given the current annual dividend of $1.11 per share ($0.2775 x 4 quarters), you would need to own approximately 5,406 shares of AT&T to achieve this goal.
However, building a position of 5,406 shares requires a significant upfront investment. With AT&T’s stock currently trading at $18.17 per share, you would need to invest around $98,227.02 to acquire the necessary shares.
An Alternative Path to $500 Per Month in Passive Income
If you’re looking for a more accessible way to generate consistent passive income, the Arrived Private Credit Fund presents an attractive alternative. This fund targets an average annual yield of 8% and provides investors with stable cash flow backed by a diversified portfolio of real estate-backed loans.
To earn $500 per month at the fund’s target yield of 8%, you would need to invest $75,000. While this may still seem like a substantial amount, the beauty of the Arrived Private Credit Fund lies in its low minimum investment of just $100. This means you can start building your position gradually, contributing as little as $100 at a time and even reinvesting the dividends earned to compound your returns over time.
Some key highlights of the Arrived Private Credit Fund include:
1. Attractive Yields: The fund aims to generate annual dividends of 7-9%, factoring in all expenses and fees.
2. Diversification: The fund offers diversification benefits compared to individual investments by investing in a pool of real estate-backed loans.
3. Monthly Dividends: The fund intends to pay out dividends monthly, providing a regular stream of passive income.
The Private Credit Fund’s investment strategy focuses on short-term loans used to finance professional real estate projects, such as property renovations, rehabs, or new home construction. These loans are secured by residential housing, with loan periods ranging from 6 to 36 months, providing an additional layer of security for investors.
By emphasizing dividend income and capital preservation, the Arrived Private Credit Fund aims to complement equity investments and help investors build a well-diversified portfolio.
While AT&T’s dividend yield is certainly appealing, the Arrived Private Credit Fund offers a compelling alternative for investors seeking to generate substantial monthly passive income with a lower barrier to entry. The ability to start small and grow your investment over time makes this fund an attractive option for a wide range of investors.
As with any investment decision, it’s crucial to conduct thorough research and consider your personal financial goals and risk tolerance before committing capital. However, for those looking to build a reliable stream of passive income, the Arrived Private Credit Fund is definitely worth exploring.
This article Here’s How Many Shares Of AT&T You Would Need To Earn $500 Per Month In Dividends originally appeared on Benzinga.com
Source: finance.yahoo.com