Overall, the situation is kind of like this... $50,000 to $100,000 to invest after a down payment on a home. The return on a dividend might be able to match the monthly payment. Net cost may be $00.00.

Don't buy just one stock! Research ETFs that pay dividends.

You expect the dividends of $100,000 to equal your monthly mortgage???

In order to see if that’s even possible, we’ll have to know what your annual mortgage is then divide that by $100,000 to determine the dividend payout your looking for and how it compares to what’s available.

quote:

Originally posted by Rey HRH:
You expect the dividends of $100,000 to equal your monthly mortgage???

Yeah is this even possible?

Maybe his mortgage is like $350 a month?

Unless you’re talking about a sizable down payment on an inexpensive home I really don’t see it happening.

Ford's dividend right now is ~6.3% .
However the stock price now is near its 2012 low at $9.46 closing Friday at $9.55.
And there is Wall Streets contention that it needs to lower the dividend. Ford responds that it will not.
The Shadow Knows.
Quick math has $100,000 producing $872 monthly before personal taxes.
Some analysists peg it's downside potential at $7.00 a share.
FWIW & good luck

Just so you know, in my experience stocks that pay a very high dividend can be very risky. So you may lose a significant portion of your investment.

BUT, my favorite dividend stock isn't a stock at all, but is a limited partnership, Dominion Energy Midstream Partners LP (DM), it pays 8.8% currently. It's affiliated with Dominion Energy, an electric and gas utility in Virginia. It owns pipelines and the Cove Point LNG facility, one of two operating LNG export facilities in the US. They just started shipping LNG this year, but LNG exports are part of President Trump's plan to increase US exports. The units are down 47% so far this year....

Other good dividend stocks include AT&T (T) at 6%, down 15% YTD; Royal Dutch Shell (RDSA) at 5.95% down 5.3% YTD; and Toyota Motors (TM) at 4.83% down 3% YTD.

Yes, I own all these stocks.

You want to have the earnings from the stock investment pay your mortgage. Others have already mentioned the risk.

Or, you could take that money, buy the house without a mortgage and eliminate the stock investment risk.

SOOOOO you want to invest $50 to $100K that pays out a monthly equivalent of: $_________ .

Here is some free advice I got years ago which worked for me. Paying interest is often greater than earning interest, or they wouldn't be in business. Put the 100k toward your mortgage & keep paying it down. You'll save more from a paid-off mortgage than you'll earn investing it.

You don’t give all the essential numbers but I’m suggesting to not do this.

If a stock dividend from $50-100,000 will cover the payment, it means the mortgage is likely less than this. Just pay for the house all cash and forget the mortgage.

I have had the pleasant situation of having considerable equity in my homes for many years. I can’t tell you how many times I thought I should take a bigger loan and invest the cash. After all, that’s what I did, manage investments. I resisted this impulse, and am I glad. What agonies, and foolish decisions, would likely have been forced on me in the 2007-10 sell off! Not only did the stock market sell off but home values were very hard hit. Our home declined about $1 million between 2007 and 2013 when we sold.

My suggestion is buy the house for cash, then take the amount of the payment you would have had and put that in a low cost fund, ETF, etc. every month. Reinvest the dividends.

This!!

Wall Street just loathes Ford because they play "outside the park". Instead of financing every nicle and dime they spend they actually put their after tax positive income into what could be considered a basic Savings Account. BTW, that Savings Account is actually a well managed Mutual Account run by Ford. End result is that Ford doesn't "play" with either the Banking System or Wall Street Brokers. Which pisses both systems off to no end and the result is poor ratings.

Note, unlike GM or Chrysler, Ford did NOT need any bailout loans during the collapse in 2008, they battened down the hatches and used their accumulated cash fund to keep the company whole.

Long term Ford is dropping the production of Automobiles in favor of SUV's and Light Trucks and that is a move I don't find much appeal in. However I enjoy driving cars and think that if Ford were to produce a V8 powered variant of the Fusion styling scheme they would have a real winner. However my more practical side does realize that the Auto Market is moving towards vehicles that I view as "just another homogenized SUV". Why people want to drive these behemoths I may not understand but I do know that is what the market wants. So Ford is actually moving towards more profitability over supporting a segment that is withering. Good news is they do intend to keep the Mustang and if fuel costs go nuts at some point down the road the Mustang Platform could be widened to produce a LOT of smaller car models pretty quickly.

Bottomline, I am happy with my Ford Stock and plan on continuing to keep my Ford stock and my but more at some point.

quote:

Originally posted by mr kablammo:
Overall, the situation is kind of like this... $50,000 to $100,000 to add to the down payment of your home...

Fixed it for you.

Ford.

Bought some when it was around $2 during the crash, I was a kid and dad said to buy it. Glad I did.

My dad just gifted our new baby about $12,000 worth with an account that reinvests the dividend into more stock.

I won't give you a name here... but feel free to email me.

Ford's dividend is 60 cents a year per share, and shares are about $10.

For $100k, you'll get 10,000 shares.

10,000 x 0.60 = $6k per year in dividends, or $500 per month, minus taxes.

quote:

Originally posted by JALLEN:
You don’t give all the essential numbers but I’m suggesting to not do this.

If a stock dividend from $50-100,000 will cover the payment, it means the mortgage is likely less than this. Just pay for the house all cash and forget the mortgage.

I have had the pleasant situation of having considerable equity in my homes for many years. I can’t tell you how many times I thought I should take a bigger loan and invest the cash. After all, that’s what I did, manage investments. I resisted this impulse, and am I glad. What agonies, and foolish decisions, would likely have been forced on me in the 2007-10 sell off! Not only did the stock market sell off but home values were very hard hit. Our home declined about $1 million between 2007 and 2013 when we sold.

My suggestion is buy the house for cash, then take the amount of the payment you would have had and put that in a low cost fund, ETF, etc. every month. Reinvest the dividends.

I will second the recommendation to pay off your house with the cash.

JALLEN speaks a truth I wish someone had shared with me a little bit earlier.

Being debt free has opened up a ton of options to invest what was previously being sent to the bank.

What JAllen said is good advice. It makes zero sense - negative sense actually - to take on debt to buy a house so that you can invest cash in the stock market.

The house won't be free if you are covering your mortgage payments with dividends but the value of your stock declines by 50%. Or what if the company lowers or suspends the dividend? Then you're doubly screwed because you lost the income and the news itself will cause the stock to crater.

Most people would be much better off using the cash to reduce the debt needed to buy the house.