MAIN News & Analysis

Invest $40,000 to Generate $4,800 in Annual Income from Stocks

To achieve $4,800 in annual passive income, an investment of $40,000 would require a blended yield of 12%. This yield is double that of mature dividend payers such as Altria (MO) with a 5.7% yield, Verizon (VZ) at 5.9%, and Main Street Capital (MAIN) yielding 8.7%. Currently, a diversified portfolio split three ways would provide approximately $2,700 annually, leading to a blended yield of about 7%. The article discusses the discrepancies between expected yields and actual returns in the income stock market.