$100 Dividends Monthly: How You Can Achieve $100 Dividends Per Month
June 16, 2025
$100 Dividends Monthly: How You Can Achieve $100 Dividends Per Month
Generating passive income from dividends is a dream for many investors—and the good news is, you don't need to be a millionaire to get started. If you’re wondering how to make $100 dividends per month, this guide will walk you through the strategies, calculations, and examples needed to reach that first financial milestone.
What Does $100 Per Month in Dividends Mean?
Receiving $100 in dividends each month means earning $1,200 per year in passive income. While this won’t pay your rent, it can cover a utility bill, streaming subscriptions, or be reinvested to compound faster.
Achieving this amount consistently requires an upfront investment—but how much?
Quick Math: How Much Do You Need to Earn $100 Per Month?
The answer depends on the dividend yield of your portfolio. Here’s a simple breakdown:
Average Dividend Yield | Annual Income Needed | Investment Required |
|---|---|---|
3% | $1,200 | $40,000 |
4% | $1,200 | $30,000 |
5% | $1,200 | $24,000 |
6% | $1,200 | $20,000 |
If your portfolio yields 4%, you’d need to invest around $30,000 to reach $100/month in dividends.
Best Types of Stocks for Monthly Dividends
To achieve consistent income, consider companies with a strong dividend track record and sustainable payout ratios.
Dividend Growth Stocks
These companies increase dividends annually, helping your income grow over time:
High-Yield Dividend Stocks
These provide higher immediate income, but require more diligence:
REITs (Real Estate Investment Trusts)
These real estate companies pay out 90% of income as dividends:
Realty Income – monthly dividend payer
Dividend ETFs
Simplify your exposure with funds like:
Schwab U.S. Dividend Equity ETF (SCHD)
Vanguard Dividend Appreciation ETF (VIG)
Global X SuperDividend ETF (SDIV)
Portfolio Example to Reach $100/Month
Here’s a sample portfolio diversified across different asset types:
Investment | Ticker | Yield | Allocation | Annual Income |
|---|---|---|---|---|
Johnson & Johnson | JNJ | 3.0% | $6,000 | $180 |
AT&T | T | 6.6% | $5,000 | $330 |
Realty Income | O | 5.2% | $5,000 | $260 |
SCHD ETF | SCHD | 3.5% | $7,000 | $245 |
Total | $23,000 | $1,015 (≈$85/month) |
To reach $100/month, you might increase allocations slightly or reinvest dividends for a year.
Tips for Reaching $100 in Monthly Dividends Faster
Reinvest all dividends until you reach your goal
Use monthly dividend payers like Realty Income
Add funds during market pullbacks for better yield
Avoid dividend traps (ultra-high yield, unsustainable payouts)
Video: How to Build a Dividend Portfolio
Watch this guide to help you structure your income portfolio:
FAQ: $100 Dividends Monthly
How much do I need to invest to make $100 in monthly dividends?
You’ll typically need between $20,000 and $40,000, depending on your portfolio’s yield. A 5% average yield gets you there with $24,000 invested.
Is it better to invest in individual stocks or ETFs?
Both can work. ETFs offer instant diversification and lower risk. Individual stocks offer better control but require more research.
Are monthly dividend stocks better?
They’re more convenient but not automatically better. Many top dividend stocks pay quarterly. You can ladder stocks with staggered payout months.
What happens if a company cuts its dividend?
Your income drops, and possibly the stock price too. That’s why diversification and due diligence are key.
Are dividend payments guaranteed?
No. Companies can reduce or suspend dividends at any time. Focus on firms with a long, stable history of payouts.
What are the tax implications?
In the U.S., qualified dividends are taxed at lower rates (0–20%). However, foreign dividends or certain REITs may be taxed differently.
Should I reinvest dividends or take cash?
Early on, reinvesting helps compound returns. Later, you might switch to cash flow for expenses.
Can I automate dividend investing?
Yes. Use a Dividend Reinvestment Plan (DRIP) and broker auto-invest features to stay consistent without emotional decision-making.
Conclusion: Building to $100 Per Month Is Doable
Getting to $100 dividends monthly isn’t a get-rich-quick strategy—but it’s absolutely possible with consistency. Start small, reinvest, and build smartly with diversified, reliable dividend payers. Once you hit $100, you’ll have both passive income and a foundation for bigger targets—like $250 or even $1,000 per month.
Use smart tools like the Rize Dividend Chatbot to compare stocks, screen opportunities, and build a sustainable strategy.
