Through the passive income that dividends provide, it is incredibly easy to start being paid to sleep.
Last year I amalgamated my Robinhood and Webull accounts into a Charles Schwab account, and I’m embarrassed I didn’t do this sooner! Another story for another time, but this is in my taxable account at Schwab, and it is something I began a few years back. Buying and holding quality, world class companies and this is the current dividend income as of July 29th, 2020.
$1,391.99 of annual dividend income. Paid to me like clockwork, without any further action or effort, that I choose to reinvest to keep that snowball growing. This isn’t free money, unfortunately, as Uncle Sam wants his cut, and it’s taken in two ways-
- Qualified Dividends – taxed at long term capital gains rates (Lower)
- Nonqualified Dividends – Taxed at ordinary income tax rates (Higher)
For simplicity, I am not factoring in taxes, reinvested dividends or compounding – just straight up income received. And receive it every 90 days from most companies, monthly from some we shall! We are not, however, receiving a paycheck every morning – wouldn’t that be nice!
Below is the illustration to show how I arrive at $1.12 for 7 hours of sleep.
That’s pretty much it. Just take your total annual dividend income, divide it by 8,765.81 yearly hours, and voila! You’ve discovered your hourly dividend income.
Now get out there, delay that gratification, save your money and start building that hourly passive income, and get paid to sleep!
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