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AT&T Inc. (NYSE:T) has long been a favorite among income-oriented 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 is a tempting option. But how many AT&T shares would you need to own to earn a consistent dividend yield of $100 per month?
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 AT&T share provides annual dividend income of $1.11 ($0.2775 x 4 quarters).
To calculate the number of shares needed to earn $1,200 per year, we simply divide $1,200 by $1.11, which is 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. Since AT&T’s stock is currently trading at $17.04 per share, you would need to invest approximately $18,420.24 to acquire the necessary shares.
An alternative way to earn $100 per month in passive income
If you’re looking for consistent passive income without having to weather market volatility, this is it Cityfunds return Fund represents an attractive alternative. This fund targets an annual percentage yield (APY) of 8% and offers investors a stable cash flow supported by a diversified portfolio of real estate assets.
One of the main advantages of the Cityfunds Yield fund is the lower minimum investment requirement. To earn $100 per month at the fund’s target return of 8%, you would only need to invest $15,000, compared to the $18,420.24 needed to earn the same monthly income from AT&T stock achieve.
In addition to the lower initial investment, the Cityfunds Yield fund offers several other advantages:
1. Diversification: By investing in a fund that holds various real estate-backed assets, you may be able to mitigate the risks associated with owning individual stocks or real estate investments.
2. Quarterly distributions: The fund pays distributions quarterly, which can be reinvested to achieve total return or paid directly into your bank account.
3. Guaranteed basic yield: The fund offers a manager guaranteed base return of 7% to 8%, providing additional security to investors.
See how much you could earn 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 looking to generate a stable monthly income with a smaller upfront investment and potentially less risk.
As always, it is important to conduct thorough research and consult a financial advisor before making any investment decisions. But for investors looking to build a reliable passive income stream, both AT&T and the Cityfunds Yield fund offer interesting options worth considering.
This article, “Here’s How Many AT&T Stock You’d Need to Earn $100 a Month in Dividends” originally appeared on Benzinga.com