The Math Doesn't Lie: What It Really Costs to Generate $300 in Dividend Income From Southern Company Stock
If you've been an investor long enough, then you know utilities stocks are great dividend payers. Consumers will do whatever it takes to keep their lights turned on, after all. But what kind of dividend income do these names generate? What would it take to produce, say $300 per month with a typical power utility name like Southern Company (NYSE: SO) ? It's not too difficult to figure out. Based on Southern Company's forward-looking annualized yield of 3.7%, you'd need 1,188 shares of the utility stock to produce $3,600 worth of yearly dividend income. That's roughly $98,485 worth of this stock if you're buying at today's price. Continue reading