DO THIS To Make $1,000/Month From DIVIDENDS! (Passive Income) | Minority Mindset

passive income is one of the most commonly searched ways on how to make money because who doesn't want to get paid while laying on the beach well one of the most accessible ways to get this type of passive income is through stock dividends which is what i'm going to be talking about in this video [Music] what's up everybody i am jasperin singh from the minoritymindset.com and welcome to the minority mindset what if you could get paid to do nothing are you telling me they're bringing the unemployment program back to us here's the difference between how wealthy people and broke people spend their money wealthy people use their money to buy assets which are things that pay you with more money broke people use their money to buy liabilities which take money away from you sounds simple enough right but here's the catch when you're buying assets you look broke because all your money is going out buying investments which you can't show off like a brand new car when you buy liabilities you are broke but you look rich because now you got the new cars and your clothes and your shoes but you have no money left over to actually build your wealth i want you to use your money to buy assets that way you can actually afford all the nice things that you want without worrying about the price but focusing on the asset part when you buy assets there are two ways you can get paid you can get paid through appreciation which is when the price of your investment goes up so if you go out and you buy a stock for a hundred dollars a share and then some time goes by and it goes up to 200 a share and you sell your stock you just made a hundred dollars in appreciation but you don't actually make any money until you sell your stock the second way you can get paid is through passive income which is when you get paid just for owning an investment so let's say you buy an investment for a hundred dollars this time and now you get paid with a five dollar check every single year just because you put this hundred dollars into an investment that's paying you with passive income there's a few ways that you can get this type of passive income you can own dividend-paying stocks which is what i'm going to be talking about in this video you can invest in real estate i talk a lot about this on a channel or you can lend money out to other people and get paid with interest but the focus in this video is how you can go from zero to a thousand dollars a month in passive income from the stock market with dividends so make sure you watch this video until the end because you don't want to miss any of these key details but before we get into that hit that thumbs up button below because if you don't well then youtube will be much less likely to show you any of our other financial news and education videos when you go to the stock market and you buy one share of a company like let's say for example you go out and you buy one share of mcdonald's then you become one of the owners of mcdonald's and so now when people go out to mcdonald's and they spend a lot of money and mcdonald's makes a whole lot more money you make money too and like i was saying before there are two ways you can get paid if you go out and you buy one share of the mcdonald's stock for let's say two hundred dollars a share and then mcdonald's announces that they're gonna start adding guacamole to their fries and now a whole bunch of people are buying these guacamole fries you might have a lot of investors who are interested in buying the mcdonald's stock and now these new buyers of mcdonald's talk are going to raise the price of the mcdonald's stock and let's say for this example that mcdonald's stock now goes up to 300 a share and then you sell your stock so you bought the stock for 200 a share and you sold it for 300 a share that means you made a hundred dollars in appreciation just for owning the stock but that's not all mcdonald's makes a lot of money right well at the end of the year they have all this cash sitting in their bank account and they need to do something with this money and typically a business has three options on what they can do with the money in their bank account at the end of the year they can save some of this money for an emergency they can invest this money back into their business so their business grows faster or they can give this money to their investors or shareholders one of the ways that mcdonald's can give someone this extra cash to you an investor or shareholder in the company is by just paying you a cash dividend this is where i want you to really think differently than the majority of people because when the majority of people think of mcdonald's they think i'm going through the drive-through to get some fries when you think of mcdonald's from now on i want you to think of getting some dividends again i'm not trying to tell you what stock to buy or how to invest your money i'm just trying to get you to think differently because at the end of every quarter and every year mcdonald's is asking themselves okay how much money can we give our shareholders for doing nothing except just owning our stock the more shares you own the bigger your dividend check is at the time of me recording this video mcdonald's pays out a five dollar dividend i'll show you how to find this information in just a minute but what that means is if you own one share of the mcdonald's stock they will pay you five dollars just for owning their stock this year if you own 10 shares of the mcdonald's stock they will send you 50 this year just for owning their stock and if you own a thousand shares of mcdonald's that means they are going to send you a check for five thousand dollars this year for doing nothing except owning their stock at first glance this is gonna seem almost impossible because you're gonna need some serious cash to go out and buy a thousand shares at mcdonald's today but i'm gonna show you some tricks that you can use to build up this passive income from dividends quickly but first let's talk about who's paying a dividend because not all companies pay a dividend most of the companies that pay out a cash dividend are going to be the more mature type companies because these older mature companies are going to be the ones that have a lot of cash sitting in the bank account at the end of the year your startup and growth companies not so much they're going to be less likely to pay you a cash dividend because if you remember there are three things that you can do with your cash at the end of the year you can save it you can invest it or you can give it to your shareholders well your startup and tech companies are growth companies which means they're going to be investing most of their money or all of their money back into their business because they want to grow as big as possible as fast as possible most of these startups tech companies are trying to grow big quickly so they actually have negative cash flows because they're using debt or investor money to grow their business as fast as they can and so they actually don't have any money left over in the bank account at the end of the year and if they do then their investors are going to think that they're actually hindering their growth because they're not spending money fast enough so if you're looking for big dividends then you're going to be looking for companies that have big profits your mature companies your reits and your high-yield dividend etfs a reit is a real estate investment trust and these are companies that invest in real estate so when you invest in a reit you're not investing in real estate directly you're investing in a company that's investing in real estate and by law reits are required to pay 90 of their taxable income out to their shareholders so you through dividends that's why in general reits tend to have much higher dividends than other stocks a high yield dividend etf is a fund that invests in high dividend paying companies so if your goal is to build up that dividend portfolio and you want to stack that dividend passive income one thing that you can do is go out and invest in a bunch of high dividend paying companies the alternative is you can invest in an etf like vym again not telling you what to invest in just an example which invests in high dividend paying companies now vym this etf is going to go out and invest in a bunch of different high dividend paying companies and you can just invest in that fund that will get exposure to all these different high dividend paying companies you can see how big of a dividend a company is paying or not paying by using a stock brokerage like our sponsor weibo so if i want to see how big of a dividend that a company is paying i can just come onto weibo and enter in the ticker symbol in the search bar so if i want to search vym i can just click on vym or search it in there expand the information and then i can see okay vym pays out a dividend of 2.95 96 cents a share based off of the current share price so for every share that i buy they're going to pay me 2.96 for this year that's a yield of 3.58 based off of the current share price let's compare that to mcdonald's so if i come here to mcdonald's i expand the information it tells me that mcdonald's paying out a dividend of five dollars a share which is a yield of 2.36 percent okay not bad and i'm gonna compare that to one more tesla okay so if i open up tesla you can see that tesla pays out a dividend of nothing there's just a dash there because tesla doesn't pay out a dividend right like we talked about earlier they're investing all their cash back into their business so tesla doesn't pay a dividend weeble is super simple to use all you have to do is create a free account fund it and then you can buy or sell whatever stock or etf that you want without paying a penny in commission because they are a commission free brokerage so you can use your money to invest instead of making your broker richer and the best part of all is that weeble is giving you two free stocks just for investing with them using our link in the description below you get your first free stock just for opening a free account and you get your second free stock valued at up to fourteen hundred dollars when you deposit a hundred dollars in your account so if you wanna learn more and see how you can get your free stocks i got the link to where you can do that in the description below minority mindset is a partner with weeble so if you use them we will get compensated but there's no additional cost to you it's free to create an account they don't charge you a penny to make a trade and they're giving you free stocks just for investing with them so if you want to learn more and see how you can start investing i got the link to where you can do that in the description below at this point this is what most people think okay i want to make a thousand dollars a month in passive income for my dividends which is like twelve thousand dollars a year so if i want to make twelve thousand dollars a year and i can get it three percent dividend that means i'm going to need 400 000 in my bank account to buy stocks so i can get my 1 000 passive income from dividends i guess i'll pass here's the secret if you really want to win in the passive income game you have to understand that this passive income dividend game is secretly a compounding game if you want to get to the thousand dollars a month quicker you need to do two things one you need to invest consistently into your dividend paying stocks and second you need to compound your dividends i'll show you what i mean and i'll stick with the mcdonald's example to keep things simple so 10 years ago the mcdonald's stock was trading for 65 a share and they were paying a dividend of 2.20 cents a year which is 55 cents a quarter if you spent a thousand dollars in 2010 buying shares of mcdonald's you would have bought about 15 shares at the mcdonald stock because their price was only 65 a share and in 2010 you would have only made like 30 over the year in dividends well in 2020 those same 15 shares that you bought wouldn't have paid you 30 they would have paid you 75 dollars in 2020 because their dividends went up but now let me add another variable to this let's say this time you don't just buy a thousand dollars worth of the mcdonald's stock you buy 10 shares of mcdonald's every single month so in the beginning that's about a 600 or 700 monthly investment that means over the last decade you would have bought 1200 shares of mcdonald's and in 2020 each year mcdonald's is paying their shareholders five dollars a share that means in 2020 you would make six thousand dollars in passive income through dividends just for owning the mcdonald's stock that you have picked up over the years now we're getting close to the thousand dollars a month but now let's do one more thing now okay you are buying 10 shares of mcdonald's every single month but every time you get a dividend check let's assume that you don't go cash it out let's assume that every time you get this dividend check you just take this dividend and you go out and you buy more shares at the mcdonald's stock now you're buying more shares of mcdonald's every single month but you're also putting more money back into mcdonald's because every time mcdonald's pays you you just use that money to buy more shares that means every single year you're going to be buying more shares which are going to be paying you more dividends which you can use to ultimately buy more shares now instead of owning 1200 shares of the mcdonald's stock you are going to own 1417 shares of the mcdonald's stock which means you're going to be making almost 7 100 a year in passive income so even if you don't put in another dollar into the company they're already paying you 7 100 a year and if you're doing this dividend reinvestment you are buying another 7 100 worth of mcdonald's stock every year without putting another dollar into the company so your wealth snowball is really rolling but if you continue buying stocks like normal and you continue reinvesting your dividends like you've been doing you will get to that 1 000 passive income mark in less than five years and then you'll be able to double that very quickly oh and i should also mention that if you do this and you own 1400 shares of the mcdonald's stock you're also sitting on a nest egg worth almost half a million dollars that you just happen to build up slowly as you're building your passive income now your snowball is rolling by itself and every time you add more money you're just packing more snow onto snowball that way it can roll bigger and faster and bigger and faster and make you wealth quicker if you want to speed the process up there's a couple things that you can do you can invest more money that way you're growing your money faster or you can invest your money into a stock or etf that's paying you higher dividends because there are funds out there that pay two or three times what mcdonald's is paying but mcdonald's is just an easy example because everybody knows what mcdonald's is but to get to that thousand dollars a month the regular passive income you need three things first you need the right financial education then you need the consistency and then you need the compounding because that's going to help you get there even faster i know this can be overwhelming but remember investing is a marathon it's not a sprint it's a long-term game and the people that understand it are the people that win over the long term now before i let you go if you are looking for a way to up your financial education that we can learn more about money management and investing well that's why we wrote a free ebook on money management and investing that you can read for free when you sign up for financial education emails which are also free you can get our free ebook and start reading our financial education emails by clicking the link up here or by clicking the link in the description below by the way our financial education emails are separate from our financial news emails thank you for watching if you enjoyed this video share with one friend that way we can help spread the word if you wanna learn more about why the majority of americans are broke i already made a video on this and you can watch this video on youtube by clicking this button right over here thank you for watching and as always keep hustling

Channel: Minority Mindset

Views: 677,965

Keywords: minoritymindset, minority mindset, minority123, jaspreet singh, get money smart, make 1000 a month from dividends, dividend investing, investing for passive income, stocks, investing in stocks, how to get dividends on stocks, how to get dividends, how do dividends work, how to dividend stocks work, dividend stocks, investing in dividend stocks, investing in dividend stocks for beginners, investing in dividends, build a dividend portfolio, stock dividends, stock dividend investing

Id: zbFjqD0U2LQ

Length: 14min 12sec (852 seconds)

Published: Sat Aug 29 2020