Wouldn’t it be nice to have an income that increases year after year and that requires practically nothing to do? With dividend stocks, that’s easier than you think. Right now it is child’s play for investors to accumulate additional income. Because the volatility of share prices in recent weeks, combined with the increase in dividends, have ensured that incredible returns can be achieved at this time.
Generate additional income with the right actions
Even returns of 4% and above are no longer the exception, as the following two actions demonstrate.
For example, him BASF-Share (WKN: BASF11) a dividend of 3.40 euros. However, you only pay €54.40 for one share (as of February 21, 2022, relevant for all courses). That means if you buy the stock today, you can expect a 6.25% return next month. If you buy 200 BASF shares, for example, you pay 10,880 euros. And with this unique effort, you secure an income that, in the best of cases, continues to increase over the years. At the end of April, the purchase will be rewarded with the first payment of 680 euros.
This investment gives you a monthly income of 56.66 euros.
However, the dividend is likely to increase further in the coming years. BASF has set itself the goal of continuously increasing the dividend. There have been steady dividend increases in recent years. Since 2012, the distribution has increased by €0.10 per share each year. Only in 2020 was there no increase due to the pandemic. Instead, the company has chosen to keep the dividend at the previous year’s level.
Even Volkswagen (WKN: 766403) has paid high dividends in recent years. This year, thanks to bubbling profits, the Wolfsburg-based group has come a long way. This year a total of 7.56 euros per preferred share will be paid.
A Volkswagen share currently costs 153.76 euros. So here you get a return of 4.9%. It is true that the constant dividend increases at Volkswagen are not as deeply entrenched as at BASF. But Volkswagen can also boast a good balance. Here, too, there is a good chance that the dividend will continue to rise for years to come.
If you bought 71 Volkswagen shares today, you would have to pay 10,916 euros. In mid-May, he would then receive a payment of 536.76 euros from Volkswagen. With this investment, another 44.73 euros of income calculated for a single month would be achieved.
If you now have €21,796 available and you buy shares of these two companies in approximately equal parts, you can easily generate an additional monthly income of €101.39. And the number is likely to increase further in the coming years. A look at the past year shows how quickly the sum can grow. At that time, he would have only received €83.75 per month for the same number of shares.
The article Make Extra Income the Easy Way: These Stocks Are Paying Big Dividends Now first appeared in The Motley Fool Germany.
Dennis Zeipert does not own any of the shares mentioned. The Motley Fool owns and recommends shares of Volkswagen.
Motley Fool Germany 2022