Have you ever desired to have more cash flow? Well I am on a mission to find out what is the best option for anyone interested in learning about cash flow and learning how to build it. Anyone looking to be financially free and cash flow free must begin finding ways to get multiple streams of income. The cash flow from dividends is a vital piece of the puzzle I believe. I think for the sake of making things easy and for comparison options let’s keep the numbers for all the investing options at 1 grand. The examples below are possible dividend figures for folks looking to increase cash flow.
What is the Best Cash Flow Investment:
1 Thousand Invested Options –
The Low price company stock option:
GE – 1000 / $26.53 per Share = 37.69 shares X .22 QTR dividend = $8.29 QTRLY (3.32% Yield)
The Mid-Priced Company Stock option:
TGT -1000 / 58.79 per share = 17 shares x .52 QTR dividend = $8.84 QTRLY (3.54% Yield)
The High price company stock with greater future returns option:
JNJ – 1000 / 100.53 per share = 9.94 shares X.70 QTR dividend = $6.95 QTRLY (2.79% Yield)
The High yielding REIT stock option:
O – 1000 / 43.19 per share = 23.15 shares X .1825 Mthly dividend = $4.22 Mthly X 3 = $12.66 Qrtly (5.05% Yield)
The High Yield Bond Dividend Mutual Fund:
PML – 1000 / 12.09 per share = 82.71 shares X .065 Mthly = $5.37 Mthly X 3= $16.11 Qtrly (6.45% Yield)
The High Yield Telecom Company Stock:
T – 1000 / 35.62 per share=28.07 shares x .46 QTR=$12.91 Qrtly (5.17% Yield)
The Diversified Vanguard ETF:
VTI – 1000 / 97.16 Price=10.29 sharesX.43 QTR = $4.42 Qtr /3= 1.47 mthly (1.78 Yield)
The High Yield Utility Company Stock:
EPB – 1000 / 35.92 price=27.83 shares X .65 =$18.08 Qtr / 3 =6.02 mthly (7.24% Yield)
What do you think about the options listed above? Can you see how easy it is to build cash flow when you have excellent opportunities like the ones listed above. I must state that 4 of the options above have been on the dividend champion list for many years, and thus considered less risky investing options.
After quickly analyzing things, the highest cash flow creator is the Utility company, but it comes with more risk. The medium level cash flow creator is Target and it has a mid-level risk as well. The lowest cash flow creator is the vanguard ETF, and it is less risky, because ETF’s are naturally diversified.
After Analyzing all my funds the Highest Paying Dividend Fund is:
VWESX: $4.00 – 4.50 per month for every $1000 dollar invested with an average yield of around 4.5%. This is a Vanguard Bond Fund. Four (4) dollars might not seem like much but if you have 80 grand invested into this fund that equates to about 3,500 dollars a year of income. If you reinvest this amount every year it will continue to grow. If you never place new contributions into it and reinvest the dividends you will grow the number of shares by 330 per year. Thus it will eventually give you a good income when you are ready to retire.
The secret that really isn’t a secret is to let all your funds reinvest while adding new dollars to the best performing funds you have whether they may be funds that grow substantially in price per share or dividend per share. If you do this I believe the small amounts in the beginning will turn into big amounts later.
I would appreciate it if anyone who reads this can comment on what they get dividend wise per 1 thousand dollar invested in any mutual fund, ETF, Index fund, Bond fund, Stock, Reit, or MLPS. Looking to share the best investment information with all the readers on this site.