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AT&T Inc. (NYSE:T) has long been a popular choice for income investors, thanks to its generous dividend yield. With a quarterly dividend of $0.2775 per share and a yield of 6.07%, AT&T offers an attractive option for those looking to generate passive income from their investments. But how many shares of AT&T would you need to own to earn a significant $500 per month in dividend income?
Let’s analyze the numbers. To earn $500 per month, you need to generate $6,000 per year in dividend income from your AT&T stock. Given the current annual dividend of $1.11 per share ($0.2775 x 4 quarters), you would need to own approximately 5,406 shares of AT&T to achieve this goal.
However, building a position of 5,406 shares requires a significant upfront investment. Since AT&T stock is currently trading at $18.17 per share, you would need to invest approximately $98,227.02 to acquire the necessary shares.
An alternative path to $500 per month in passive income
If you’re looking for a more accessible way to generate consistent passive income, the Arrived private credit fund offers an attractive alternative. This fund targets an average annual return of 8% and provides investors with stable cash flow, supported by a diversified portfolio of real estate-backed loans.
To earn $500 per month at the fund’s target return of 8%, you need to invest $75,000. While this may still seem like a substantial amount, the beauty of the Arrivald Private Credit Fund lies in its low minimum investment of just $100. This means you can build your position gradually, contributing as little as $100 at a time and even reinvest the dividends earned to compound your returns over time.
Some key highlights of the Arrivald Private Credit Fund include:
1. Attractive returns: The fund aims to generate an annual dividend of 7-9%, taking into account all costs and fees.
2. Diversification: The fund offers diversification benefits compared to individual investments by investing in a pool of real estate-backed loans.
3. Monthly Dividends: The fund plans to pay monthly dividends, providing a regular stream of passive income.
The Private Credit Fund’s investment strategy focuses on short-term loans used to finance professional real estate projects, such as renovations, renovations or new construction of homes. These loans are backed by residential construction, with loan terms ranging from 6 to 36 months, providing an additional layer of security for investors.
By emphasizing dividend income and capital preservation, the Arrivald Private Credit Fund aims to complement equity investments and help investors build a well-diversified portfolio.
While AT&T’s dividend yield is certainly attractive, the Arrivald Private Credit Fund offers an attractive alternative for investors looking to generate substantial monthly passive income with a lower barrier to entry. The ability to start small and grow your investment over time makes this fund an attractive option for a wide range of investors.
As with any investment decision, it is critical that you do thorough research and consider your personal financial goals and risk tolerance before investing any capital. However, for those looking to build a reliable stream of passive income, the Arrivald Private Credit Fund is definitely worth exploring.
Visit Arrivald’s website to learn more about the Private Credit Fund and start your journey to generating $500 per month in passive income.
This article, Here’s How Many AT&T Stocks You Would Need to Earn $500 a Month in Dividends, originally appeared on Benzinga.com
