Discover the benefits of 10% dividend yield payouts to pay off your student loan or mortgage.
For the past five years, I've been researching different ways to Financial Freedom. Luckily, there are many, but they all begin with KNOWLEDGE.
For many of us, our mortgage bill is by far the largest expense we have each month.
What if we could pay for this large, recurring monthly expense with a passive, recurring monthly income?
It's possible with a high-yield, monthly-dividend ETF like JEPI. This ETF pays a dividend each month and its dividend yield is currently over 10%.
Let’s walk through this idea.
𝙈𝙤𝙣𝙩𝙝𝙡𝙮 𝘿𝙞𝙫𝙞𝙙𝙚𝙣𝙙𝙨:While most dividend stocks pay out a dividend on a quarterly basis, JEPI pays them monthly.
𝘿𝙤𝙪𝙗𝙡𝙚-𝘿𝙞𝙜𝙞𝙩 𝙔𝙞𝙚𝙡𝙙:JEPI’s dividend payout has varied from month to month, but it currently yields an attractive 10.2%.
𝘿𝙞𝙫𝙚𝙧𝙨𝙞𝙛𝙞𝙘𝙖𝙩𝙞𝙤𝙣:The advantage of not putting your eggs in one basket. JEPI owns 120 different stocks.
JEPI is further diversified in that its top 10 holdings make up just 17.6% of the fund, so it doesn’t leave investors overexposed to just one or two stocks. In fact, no position has a weighting of more than 2%.
JEPI’s portfolio contains a wide variety of large-cap, blue-chip U.S. stocks, ranging from tech stocks like Amazon, Microsoft, and Adobe to dividend mainstays from the consumer staples sector like Coca-Cola, Pepsi, and Hershey.
Stick with me here.
The goal is to manage our money better and make wise financial choices today that will be advantageous in the long run.
Let’s say you still owe $200,000 on your loan. At an APR of 6.5%, your monthly payments would be around $1,515.
If you have $50,000 in savings to invest, you have a few choices:
- Pay a lump sum towards your mortgage.
- Put it into a high-yielding savings account, and you could get 3% on your investment per year. That's a whopping $1,500 for the year.
- Alternatively, invest the $50K in JEPI and receive a monthly dividend payment of approximately $500 per month = $6000 per year.
So you have choices, and that is awesome.
Starting with a Single StepIf you don't have $50k just lalyinground, start small. Buy a few shares each month.
$10,000 in JEPI shares would mean receiving a monthly dividend payment of $100.
You could start paying off a mortgage or student loan with, let’s say, a 5% interest rate - with an investment earning you 10%.
You could pay off an additional $1,000 a year and reduce your debt faster.
It's even possible to find a 0% interest loan and make money from other people's money.
To build generational wealth we need to take advantage of all the tools and strategies available to us. We need to gain the knowledge that may not have been taught by our parents and definitely not taught in our schools.
This is why we are sharing this at Dream Cast Project, - to level the playing field for all.