Required Investment to Create $100,000/yr in the Stock Market

I'm sure many of you are interested at the prospect of earning passive income while you drink a Piña Colada on the beach. As am I, so I did some calculating to find out exactly how large and investment would be required to produce $100,000/yr from blue chip stocks.

The point is to invest into Dividend producing stocks that are part of the S&P 500. 3 different companies will be chosen with different payout schedules that will earn you $8,333.33/mth ($100,000/12mths). 

For this study, we will be purchasing:

  • Coca-Cola Co. (Jan, April, July. October) 
  • AT&T Inc. (February, May, August, November)
  • IBM (March, June, Sept, December)

Coca-Cola Co. 

Payout= $0.40/share 
Stock Price=$53.77

Calculation=8,333.33/0.40= 20,834 Total Shares

5,145 TS * $53.77 

Total Investment = $1,120,244.18

AT&T Inc.

Payout= $0.51/share 
Stock Price=$33.34

Calculation=8,333.33/0.51= 16,340 Total Shares

16,340 TS * $33.34

Total Investment = $544,775.60


Payout= $1.62/share 
Stock Price=$149.45

Calculation=8,333.33/1.62= 5,145 Total Shares

5,145 TS * $149.45

Total Investment = $768,920.25


With these 3 stocks, to create an income of $100,000/yr you would need to invest a grand total of $2,433,940.03. 

That will create a return of 4.11% each year! 

The goal is to create multiple flows of passive income. Then you can be truly free!!

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