How to get triple digits in dividends

Last Updated on 23, March 2014

Let's assume the dividend yield is 3% per annum. To get $100 in dividends per year, you will need to have a portfolio size of 100/0.03=$3,333.00. This assumes that the expense ratio do not exceed 3% in a year otherwise there will be no dividends. Many unit trusts have expense ratio + hidden fee exceeding this amount. It is best to consider using ETFs for a low cost and diversified instrument.

Like this article? Subscribe to my newsletter below for more.

Get regular Tips on Financial Planning. Free subscription for 3 years. Covers all aspect of financial planning such as 'How much salary you should have?', 'How to avoid insurance that is not suitable?", 'What are the retirement planning methods?", etc

Name:

Email: