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AT&T Inc. (NYSE:T) has long been a favorite among income-seeking investors due to its attractive dividend yield. For those looking to generate passive income from their investments, AT&T’s quarterly dividend of $0.2775 per share and 6.63% yield make it an enticing option. But just how many shares of AT&T would you need to own to earn a steady $100 per month in dividend income?
Let’s do the math. To earn $100 per month, you would need to generate $1,200 per year in dividend income from your AT&T shares. Given the current quarterly dividend of $0.2775 per share, each share of AT&T provides $1.11 in annual dividend income ($0.2775 x 4 quarters).
To calculate the number of shares required to earn $1,200 per year, we simply divide $1,200 by $1.11, which equals approximately 1,081 shares. So, if you owned 1,081 shares of AT&T, you would be on track to receive $100 per month in dividend payments.
Of course, building a position of 1,081 shares requires a significant upfront investment. With AT&T’s stock currently trading at $17.04 per share, you would need to invest around $18,420.24 to acquire the necessary shares.
An Alternative Path to $100 Per Month in Passive Income
If you’re looking for consistent passive income without having to weather the market volatility, the Cityfunds Yield fund presents an attractive alternative. This fund targets an 8% annual percentage yield (APY) and provides investors with stable cash flow backed by a diversified portfolio of real estate assets.
One of the key advantages of the Cityfunds Yield fund is its lower minimum investment requirement. To earn $100 per month at the fund’s target yield of 8%, you would need to invest just $15,000 compared to the $18,420.24 required to generate the same monthly income from AT&T shares.
In addition to the lower upfront investment, the Cityfunds Yield fund offers several other benefits:
1. Diversification: By investing in a fund that holds a variety of real estate-backed assets, you can potentially mitigate the risks associated with individual stock ownership or property investments.
2. Quarterly Distributions: The fund pays out distributions on a quarterly basis, which can be reinvested to compound returns or paid directly to your bank account.
3. Guaranteed Base Yield: The fund offers a manager-guaranteed base yield of 7% to 8%, providing investors with added peace of mind.
See how much you could be earning with the Cityfunds Yield fund.
Ultimately, the decision between investing in individual dividend stocks like AT&T or a diversified fund like Cityfunds Yield depends on your personal financial goals, risk tolerance and investment timeline. While AT&T’s dividend yield is undoubtedly attractive, the Cityfunds Yield fund offers a compelling alternative for those seeking to generate steady monthly income with a lower upfront investment and potentially less risk.
As always, it’s essential to conduct thorough research and consult with a financial advisor before making any investment decisions. But for investors looking to build a reliable stream of passive income, both AT&T and the Cityfunds Yield fund present interesting opportunities worth considering.
This article Here’s How Many Shares Of AT&T You Would Need To Earn $100 Per Month In Dividends originally appeared on Benzinga.com
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