Thoughts on a Dividend Stream For Entertainment

Dividend Stream Idea

The idea is to invest money into a stock that yields a dividend.  Hopefully the stock(s) have some growth potential and yields a dividend rate greater than 5 %.  REITs usually provide such dividends, perhaps they would be a good place to start.  At first, use all of the dividend for entertainment purposes, but after enough money is invested, perhaps throttle back the usage of the dividend to half.  Then with the other half, reinvest it back into the dividend stock.  This way the amount would continue to grow even after you stop investing earned income into it.

Dividend Stream Start

So far, this site has $100 saved up for investing.  At 5%, that would only give out $5.00 a year.  Does sound  like much, but it could buy a few cheap games for and Apple iPod, or perhaps materials for a cheap experiment.  Still, we’ll wait until we have $500 to $1,000 saved up before we invest it.  If we get $1,000 at 5%, that would yield $50 a year and while not a lot, it would enable us to do a few cool things.  Once we get $10,000 saved up, then the dividend stream could provide $500 a year, and that would enable us to do some pretty cool things monthly!

At his point in time, we can just dream about the investments that we can purchase, but really we’ll have to wait until we have enough to invest before we take the plunge.  Still it is fun to dream.


Thanks for reading,