Today, I want to take a look at real life examples that will show you how to make $1,000 a year in dividend income off of $10,000. It just requires finding the right mixture of income yielding securities. Here is a portfolio of REIT’s, utilities, energy, and financial stocks that could generate a 10% annual return.

Dividend Income Portfolio

57 shares of VerizonComm. (VZ) @ $35.11 =            $2,001.27

70 shares of Hatteras Financial (HTS) @ 28.53 =    $1,997.10

474 shares of Chimera Invest (CIM) @ $4.22 =      $2,000.28

51 shares of First Energy Corp (FE) @ $39.43 =     $2,010.93

105 shares of Triangle Cap (TCAP) @ $18.97 =       $1,991.85

Total Cost:                                                         $10,001.43

Dividend Income

Verizon dividend = 57 shares x 1.95 =                $111.95

Hatteras dividend = 70 shares x 4.00 =            $280.00

Chimera dividend – 474 shares x .68 =              $322.32

First En. dividend = 51 shares x 2.20 =            $112.20

Triangle Cap dividend – 105 shares x 1.68 =  $176.40

Total Dividend Income:                   $1,002.87

Keep in mind that this dividend amount does not take in account reinvested dividends. The actual amount would be much higher if dividends were reinvested. This is just a hypothetical portfolio. It is by no means a recommendation to go buy each of these stocks. I just wanted to illustrate that you could easily earn over 10% on your portfolio in dividend income.

As you can see its easy to make money investing with a consistent dividend income.

©2011 Buy Like Buffett. All Rights Reserved.

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Buy Like Buffett – Make Money Investing The Warren Buffett Way