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If you want to earn a steady passive income from your investments, dividend stocks are for you Microsoft Corp. (NASDAQ:MSFT) seems like an obvious choice. After all, the technology giant has been a reliable dividend payer for years and is continually increasing its quarterly payout. But before you start looking at Microsoft shares, let’s take a look at the numbers.
To earn $100 per month in dividends from Microsoft, you would need to own a whopping 400 shares at the current quarterly dividend of $0.75 per share. With Microsoft trading at around $409 as of this writing, this would require a staggering investment of $163,600.
Sure, you’d earn a whopping $1,200 per year in dividend income. But that only translates to a paltry 0.73% return on your investment. Suddenly the dream of passive income looks a little less dreamy.
An easier way to generate passive income
What if I told you that there was a way to earn significantly higher returns without having to tie up hundreds of thousands of dollars in a single stock? Enter Arrivald Homes, the real estate investment platform that lets you buy shares in rental properties for as little as $100.
At Arrivald, the average annual dividend yield across all offerings is an enticing 4.2% – that’s more than five times Microsoft’s current yield. And unlike Microsoft, which pays dividends quarterly, Arrivald investors get paid every month.
Let’s do the math: To generate $100 per month in passive income at a 4.2% return, you would only need to invest $28,571. That’s a fraction of the $163,600 you’d have to put into Microsoft stock to generate the same source of income.
But here’s the kicker: You don’t have to come up with the entire $28,571 at once. With Arrival, you can start with as little as $100 and grow your portfolio over time by investing in $10 shares of individual rental properties. This means you can start generating meaningful passive income immediately and grow at your own pace. So that you can expand your portfolio even faster, these monthly dividends can be reinvested directly into additional properties if necessary.
Of course, no investment is without risk. By diversifying across multiple properties – each carefully reviewed by the platform’s team of real estate experts – you may be able to mitigate some of the risks associated with directly owning physical properties.
The final result? Although Microsoft is a rock-solid company, it’s unlikely that its dividend alone will fund you financial freedom any time soon. For investors seeking higher returns and the ability to start small, Arrivald’s rental real estate stocks offer a compelling alternative.
So why settle for a paltry 0.73% return when there are reliable options with higher returns? Click here to explore current offerings and start building your passive income portfolio today.
This article: How many Microsoft shares do you need to earn $100 a month in dividends? (Note: You’re Better Off With This Alternative) originally appeared on Benzinga.com
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