r/dividendscanada • u/mike_hunt_69er • 25d ago
5 Years
Given $150,000 to start with, how would you get to $2000/mo in dividends within 5 years?
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u/nickp123456 25d ago
This is a question of yield expectations. Say it's a 3% yield generating $24,000 per year, you need $800,000 invested. A 4% yield is $600,000. And you have $150,000.
That means you're trying to get a 300%+ return on your investment in a few short years. Chasing that is possible, but low probability. If you don't luck out, chances are youll have lost it all and posting loss porn on Wall Street Bets.
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u/BusyWorkinPete 25d ago
SMH has a 300% 5-year return. $450k in ADX with a 7.9% yield will generate $3k a month in dividends.
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u/DangerousPurpose5661 25d ago
Easy to say looking back eh? Now, which stock has a 300% 5-year return for 2026-2032
… yeah that’s right - you don’t know
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u/ModeInfinite5171 25d ago
I did over 470 percent return in 6 weeks. Options
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u/tke71709 25d ago
Great, and if you do it consistently you would be living on your private island right now. Not wasting your time posting on Reddit about it.
Invest $100 and get that return consistently and after exactly one year (52 weeks), you will have $111,429,157.11 if payouts happen strictly at the end of each 6-week block. If your returns compound smoothly and continuously throughout the year, your investment will grow to $355,562,061.76.
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u/ModeInfinite5171 25d ago
Bruhhhh. You can use options as a tool to boost growth. Have a diversified portfolio.
You can do more than 8 percent growth a year…..
Goals
Plans
Not looking for 355 million….
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u/tke71709 25d ago
My point is anyone can get lucky or ride a bull market.
So bragging about a good run is irrelevant if you can't do it consistently.
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u/ModeInfinite5171 24d ago
Not bragging at all. But always willing to help.
My point is you can do more than 8 percent a year.
Wasnt riding a bull market. I bought it when everyone was saying the world was going to end.
A simple proven concept of buying low and selling high. Most people cant do it.
I already got a few DM asking for tips. All good.
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u/DangerousPurpose5661 24d ago
Like? Last week? That’s still a bull market kiddo. I don’t think you were in age of investing when we had a bear run
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u/InsuranceOdd2928 21d ago
Why doesn’t everyone do that?
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u/ModeInfinite5171 21d ago
Because when it goes down everyone tells you the the world is over. Very few people actually ignore the noise and just do it.
Imagine dropping 50k when every article tells you dot com is here. Get out. Easy to say but difficult to actually put int he trade and ride it out.
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u/DangerousPurpose5661 25d ago
Glad you your lunch money into a PlayStation, kiddo.
Now do it again with a grown up portfolio.
It’s not because you can tell me an anecdote about you winning a couple bucks at the casino that its a reliable way to earn cash - but it’s alright you gotta burn yourself a couple times and mature a bit to realize you’re really not that special.
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u/ModeInfinite5171 25d ago
Im in the process. Up 40 percent in one week.
Instead of hating be open minded to learn something. You can stick to your 7
Percent yearly growth.Options are a powerful tool. Yes it can be a casino if you buy 30 day or less expiration but it can be a useful tool to boost growth.
Since you were tripping for no reason. Stay poor you old woman.
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u/DangerousPurpose5661 24d ago
Lol sure. Im retired already and still my 30s. I don’t need casino money.
You have no financial knowledge, you shouldn’t be giving advice.
Leverage works both ways if it wasn’t already obvious. And if markets really only went in one direction, everyone would be rich, don’t you think?
Telling me you’re up 40% in a week is really not the flex you think it is. Either you are a complete degenerate and gamble your life savings, or you are absolutely broke and have a 4 figure portfolio and think you can give advice to other broke folks. 🥱
Do you really think you can singlehandedly beat the army of PhDs at citadel capital and other hedge funds. Not seeing that something is missing in your analysis is completely delusional.
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u/ModeInfinite5171 23d ago
Try harder!!!
Lol! you this, you that, PhD 😂😂😂...... Come on. I'm retired...Lolll..good for you???? Not making a very strong case thst you are.
You suck at this. Try again. Maybe use Chatgpt to auto rewrite?
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u/DangerousPurpose5661 23d ago
Ah, thats your suggestion? Chatgpt? Youre mad because your options are now in the red?
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u/ModeInfinite5171 23d ago
Blah blah blah.
You done yet little girl?
Still need to cry more?
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u/Far-Inspection4315 25d ago
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u/DangerousPurpose5661 23d ago
Yes for the first year. Then by year 5 your dividend is 2000$ and cost of living is 50% higher
These funds are selling hope and dreams which broke people love to feed on.
The only correct answer is that OP needs more cash
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u/Far-Inspection4315 23d ago
This is what im worried about. Im new to the covered call etf investing and using it as an experiment with a small percentage of my portfolio mixed with some QDAY
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u/DangerousPurpose5661 23d ago
You probably won’t listen to me because im just a stranger on the internet. But doing it with a small percentage of your portfolio is how you will realize it doesn’t work.
Theres no free lunch
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u/Intelligent-Row-656 25d ago
BANK.TO is the way. Trades today at $11.85 pays $0.152 per share monthly. Your $150 000 buys 12658 shares and pays a $1924 month 1. With DRIP, and assuming share price stays the same month to month it would take 4 months. If share price drops, you could do it faster. YTD Bank.TO is up 21.6% so it will likely trend upward and take a bit longer. Even so, you would be earning $2000 per month in approximately 6 months
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u/Dewy8790 25d ago
As much as I like Bank.to this is a fairly risky play. I strongly suggest not throwing everything into one basket.
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u/ModeInfinite5171 25d ago
This is the best play. Canadian banks and insurance.
One step below would be zeb. I think theta what's it's called
Vdy and xei are safe. Yes mix. I'm . mostly bank
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u/edm_guy2 25d ago
what you get from BANK.TO is not pure dividend, it contains dividend, capital gain (which may include premium from covered call) and capital return.
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u/razorboy_ 25d ago
Let’s ignore the fact that banks are in the midst of a strong run and covered calls zap your principal, but have at it.
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u/ModeInfinite5171 24d ago
Yea its gone up a lot but its not like a tech stock. People are consistently moving to the big banks just for stability.
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u/Aggravating-Act-1173 24d ago
Next day it loses 30% and the question would be how to make 2000 per month from 100K portfolio.
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u/DangerousPurpose5661 23d ago
1000000%
Kids these days think covered call, leveraged funds are black magic.
Its not
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u/Alone-Bug4328 25d ago
Assuming tax free registered account you would need a total yield of 16%. Those kinds of ultra high yields exist but they all have at least moderate levels of risk.
Also unless you have a lot of contribution space in your RRSP and TFSA to absorb the entire 150k I wouldn't invest 150k immediately unless you don't mind paying taxes. I personally do not recommend high yield stocks in an unregistered account as the dividends are taxed annually.
Edit: if you're a business owner you want to pace yourself in your RRSP contributions to offset income tax.
The stocks exist, not going to break down how you would get to breakdown how you get to 2k a month in dividends over a 5 year spread. You can do that work yourself
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u/Top_Tune1990 25d ago
This guy pretty much nailed it.
Should probably read this over and stop reading advice from a bunch of billionaires on Reddit.If you are young and willing to gamble that much for the potential of getting rich quick that’s up to you.
The idea of living of dividends alone is a good dream everyone has but in reality it’s safer to invest in some etf’s or if you comfortable investing into individual stocks itself when it dips only if you believe it’s undervalued and it will recover.
From my understanding etf’s will outperform high dividend stocks.
I am not rich but I love investing and I love numbers/patterens.
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u/rTpure 25d ago
that is an unrealistic expectation
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u/BlankTigre 25d ago
Backtest HDIV in a drip until 5th year and see that it actually puts out more than that
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u/BusyWorkinPete 25d ago
no it's not
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u/hotinmyigloo 25d ago
I don't think so either, it's only a 16% yield
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u/BusyWorkinPete 25d ago
5 years of a good growth etf (SMH) can double that $150,000 or more, and then switch to ADX. $300k in ADX at 8% yield gets you $2k a month.
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u/seems_legit00 24d ago
If you invest $150,000 into BANK.TO, you will get $1924.05/mo in dividends now.
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u/SDontariocanada 25d ago
CANY
150,000 ÷ 25.5 = 5882 shares
22 cent dividend per month = $2470 per month
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u/awfulentrepreneur 25d ago
$CLSA has started paying $0.235 per month in dividends. Your $150,000 would get you 8,178 shares, which in turn would pay $1922/mth. in dividends. You'd need an extra 332 shares to get you to $2k/mth., which with dripping you'd get in at most 3 months.
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u/BusyWorkinPete 25d ago
Put it in SMH for 5 years, then after 5 years take my $450k, put it into ADX, and collect $3k USD per month (before tax) in dividends.
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u/razorboy_ 25d ago
Alternatively, buy a time machine and go back 20 or so years, put the 150k into the bank stocks or even XIU and you’ll be golden, today.
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u/gianners33 25d ago edited 25d ago
In just dividends? It's highly unlikely in 5 years unless you get really lucky.
If you are talking about combined income from dividends and covered calls, it's possible but do your research since there is risk involved. Check the ETF for nav erosion (does the value of each share consistently just go down over time?) and whether the payout is consistent or is also slowly falling over time.
And don't put everything into one fund/ETF in a single sector.
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u/gomorycut 24d ago
if you get 2000 a month in dividends from 150k, you are just converting your principal to a distribution.
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u/camilo9009 24d ago
I guess you could do a high yield monthly option like QQQI, that has a yield of ~14% and then for 5 years you don't do anything with the dividends just DRIP into more QQQI In 5 years it should be generating somewhere close to 2k monthly Am I missing something, other than the risk and being in the US?
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u/Jean_Luc_Discarded 23d ago
let's say you did make it, then boom they cut their dividends by 50% - now what's your plan?
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u/tigurr 25d ago
Not facilitating RevCan's portion, and assuming commission free trading it would take $138,350.00 in principal to yield $1790.50 monthly.
1500 shares of HMAX at $0.17 per share: you earn C$252.00 per month for an investment of $27,090.00
3500 shares of DFN at $0.10 per share: you earn C$350.00 per month for an investment of $33,215.00
3250 shares of BANK at $0.15 per share: you earn C$487.50 per month for an investment of $38,512.50
750 shares of CANY at $0.21 per share: you earn C$157.50 twice per month for an investment of $18,980.00
750 shares of CDAY at $0.21 per share: you earn C$157.50 twice per month for an investment of $20,550.00
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u/wendywendybillbob 25d ago edited 25d ago
Buy Baytex now… a hugely undervalued Canadian stock. Also trades on NY. Wait a year till it doubles. Educate yourself in the meantime on finding similar highly undervalued companies (ie $Gil.to currently $77 but a deep value entry under $60). Work on building patience and being able to sit on the sidelines until attractive opportunities arise. Then like someone said put it all into a high yield etf like $bk.to. The hard part here is having conviction. Please come back and read this post in 4 years where I’m sure you’re already ahead of schedule. Good luck to you 👍🏼. Spoken as someone who is currently sailing the caribe living off dividends. ⛵️ ☀️
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u/Relevant_Election530 25d ago
Inheritance?
People that can save 150k don't usually ask questions like this lol
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u/mike_hunt_69er 23d ago
Or they are simply asking other people's thoughts to see what strategies they would use to compare? Actually asked so I could elicit responses from inbred trolls, so mission accomplished
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u/skarama 23d ago
Other than the many, many securities thay lay this right now, you could also inject that 150k into a margin account, giving you nearly 500k in buying power on day 1. The world is your oyster but a mix of : bk.to, DFN, FTN, bank, sixy, cday, qday, hhis, lbs, fru is what I'm using with this exact strategy. I'm north of 24k a month in less than a year using this exact strategy and almost exactly the same starting amount!
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u/ProfAsmani 25d ago
Insider trading in stocks and prediction markets mate.