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Thursday, July 31, 2014

How Much Worth of Shares Do You Actually Need to Own to Sustain P5 Million worth of Dividends Per Year?

Making some computations...


To have P5M a year in dividends, for a security paying 5.50% dividend payout rate, you must own P100M worth of shares to get that P5M a year. For securities with less dividend rates, you need more than P100M to maintain that P5M a year. If you want to have a portion of it reinvested and inflation factored in, you have to even more than that to maintain P5M a year in cash dividend withdrawals.


How do you make P100M.


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