Find Your Freedom Number
Have you ever wondered how many shares of Realty Income (O), Coca-Cola (KO), or your favorite Dividend ETF (like SCHD) you need to own to pay your rent or mortgage purely with passive income?
The “Magic Number” is the exact number of shares required for the dividends to pay for your lifestyle—or to reinvest enough to buy more shares automatically (the DRIP effect).
Understanding the inputs:
- Share Price: The current market value of the stock.
- Dividend Yield: The annual percentage return paid out in dividends.
- Desired Income: How much cash flow you want per month.
Use this tool to visualize your goal. It’s easier to stay consistent when you know you need exactly “X” more shares to reach financial independence.
Disclaimer
Nothing I write here is investment advice or a call to buy or sell. Draw your own conclusions and see what’s best for you. Past results are no guarantee of future results. Take care of your money, because nobody will do it for you.