How much do I need to invest to receive R$1,000 per month in dividends?

To know how much you need to invest to receive R$1,000 in dividends, you need to consider factors such as the dividend yield of the companies chosen to invest your money.

In practice, this will depend not only on investments in shares but on the entire structure of your investment portfolio.

What are dividends?
Dividends are portions of a company's net profit that are distributed to its shareholders as a form of remuneration. You receive this type of income when you buy shares in a company on the stock exchange, receiving an amount proportional to your investment.

It is a variable income investment and one of the main advantages is the exemption from Income Tax (IR) for individuals.

In addition to shares, real estate investment funds (FIIs), infrastructure investment funds (FI-Infra) and BDRs (international share receipts) also pay dividends.

What are the risks and how to protect yourself from them?
Due to the fluctuation in the value of shares and the performance of companies, whether due to the economy, the market in which they operate or their financial health, investing in shares is a modality considered to have a risky profile and for long-term objectives.

For this reason, it is recommended to diversify the investment options in your portfolio. Both in relation to types of investment in variable income and fixed income, for example. This way, you balance the risks to your assets and generate more constant streams of income.

There is no standard portfolio model, as the types of investments chosen and the percentage they represent as a whole depend on the investor profile and other variables, such as the amount of money available to invest and what stage of life the person is at.

There are two main moments: building financial assets and using it to pay for your cost of living. The first refers to years in the job market or doing business, while the second usually happens in retirement.

To guarantee cash flow from investments when there are no other forms of income, it is necessary to put together a strategic plan that generates income every month or every six months, and prioritizes applications with shorter validity periods and higher liquidity.

How do I calculate how much I need to invest to make money with dividends?
Regardless of the type of investment, it is important to remember that thinking about returns as something in the medium and long term is ideal. With the exception of the financial reserve, which needs to be available at any time, applications perform best after at least a few years.

In other words, the longer you leave your investments intact, putting in more money without withdrawing any amount, the greater your financial assets and passive income generated per month will be.

To start making money with dividends, set up a strategy of buying company shares and fund shares based on the dividend yield and the amount you have available to invest.

Calculation
To calculate how much money you need to receive R$1,000 per month, for example, you need to follow the following formula:

Invested equity = (dividends per month * 12 months of the year) + dividend yield

Considering a portfolio of investments in shares and funds with a 7% dividend yield, it would be:

Invested equity = (R$ 1,000 * 12) / 0.07

Invested equity = R$ 171,428.57

Note: to arrive at 0.07, simply divide 7% (dividend yield) by 100.

Dividend yield
Dividend yield is a financial indicator that measures the return on investment based on the payments it distributes to shareholders. Very high or very low percentages can trigger red flags, and 7% and 8% are often considered more stable values.

Other characteristics can be evaluated together:

- price history of the company's shares or fund shares;
- stability in the payment of dividends over time;
- comparison of the company's dividend yield with its average value in the sector in which it operates.

How to get enough assets to receive passive income?
To have enough income to withdraw every month, you must first go through a phase of accumulating financial assets. In other words, you should save and invest your money in applications that generate income.

After a few years and decades, even starting with little money, the total invested starts to pay out larger amounts, which can be used as passive income.

See the step by step:

- Define your goals and objectives: think about the amount of passive income you want to achieve and also about other achievements that depend on larger amounts of money, such as buying a property and starting a business, for example.
- Organize your financial life: know how much you earn and how much you spend every month, where you can cut expenses, forms of extra income and how to pay off all debts, if any.
- Have a financial reserve: before investing in variable income, it is essential to have at least 6 months of living expenses in an investment. high liquidity. In other words, it allows immediate withdrawals of money. Meu Porquinho, from Inter, is an example.
- Know how much you need to invest: calculate how much you will need to invest every month and for how long.
- Build your portfolio strategy: plan your investment portfolio and start with a higher percentage of money in fixed income and explore variable income modalities and international investments.
- Be realistic: even if you still can't invest the ideal amount for your goals, the most important thing is to start somewhere.

Financial institutions usually offer investments starting at R$1, and monthly contributions can increase over the years, as your financial situation improves.

Source: CNN