n this article, My Economy Guide will tell you about dividend retirement, which is a very important target for long-term investments . In previous articles, we have shared important information about stocks with you. With this article, you will be able to set clearer and more important targets for your long-term investments.
Investors make various investments in order to be financially free in the future. One of them is the investment made on dividend income and aimed at dividend retirement . Unlike other retirement options, this method, if implemented correctly, will offer more than would be expected in the future.
As is known, people pay insurance premiums as long as they work and thus they are entitled to retirement when they reach a certain age. However, a significant number of people wish to be even more financially free at the time of retirement by applying different pension methods. In order to achieve this goal, retirement options of individual pensions or insurance companies are generally preferred. Apart from these, the dividend pension is ahead of these pension methods.
WHAT IS DIVIDEND RETIREMENT?
Although the concept of dividends is well known to investors interested in the stock market and stocks, many people do not know this concept. In short, companies distribute their profits to their shareholders, holders of shares. Companies give their owners a profit at the end of one year as a certain amount of money per share.
When investors regularly buy from the shares of the companies that distribute their profits in this way, they earn enough income from dividends after a certain point. The income to be generated will vary according to the company’s profit, dividend rates and yield. However, for investors with various stocks, ie a rich portfolio, dividend changes will not affect the average income much. Dividends that require only the right investment are also ahead of other methods with the amounts they earn in retirement .
RETIREMENT WITH DIVIDENDS
Let us explain this retirement event that has arisen as a result of the acquisition of company stocks. 10% of the money used in the investment will be returned to us each year with shares purchased from a company that gives an average dividend of 10% and distributes it regularly. In order to reach the dividend retirement in a shorter period, the income and the shares should be taken again. Let’s examine the status of an investor who buys a stock with 1000 pounds monthly and calculate the monthly dividend pensions .
- 12,000 TL per year investment is taken with the shares. With these shares, a dividend income of 1200 TL is obtained at a rate of 10%. This income is also invested again. At the end of one year, the total amount invested in stocks would be 13,200 TL.
- In the following year, a bond of 12.000 TL is taken again. Total money would be 25,200 Turkish liras and 2,520 Turkish lira would be provided at the end of that year. This income is taken again with the deed.
- If the same method is continued after 10 years, approximately 210,000 liras will be owned. The income to be given by these bills is 21.000 TL per year. As a result, this investor will have a monthly income of TL 1,750.
As explained above, the researches and the right decisions will turn into a serious profit. In addition to the income obtained, the total earnings will be even higher with possible increases in stocks. As shown in the example, dividend retirement is one of the best methods for earning additional income.