---
title: 'The Fastest Way to Live Off Dividends! ($2,900 per Month)'
source: 'https://youtube.com/watch?v=9P6xcsyq8IU'
video_id: '9P6xcsyq8IU'
date: 2026-08-26
duration_sec: 755
channel: 'John''s Money Adventures'
---

# The Fastest Way to Live Off Dividends! ($2,900 per Month)

> Source: [The Fastest Way to Live Off Dividends! ($2,900 per Month)](https://youtube.com/watch?v=9P6xcsyq8IU)

## Summary

This video presents three strategies for generating passive income through dividends, aiming to achieve $2,900 per month or $35,000 per year. It explains the basics of dividends and dividend yield, then details covered call ETFs, high-yield REITs, and Dividend Aristocrats as potential investment paths.

### Key Points

- **Introduction to Living Off Dividends** [00:02] — The video introduces the concept of living off investment dividends, contrasting it with other retirement options like reverse mortgages or selling possessions.
- **Determining Investment Amount** [00:57] — The ideal investment amount depends on desired lifestyle and spending; the average annual spending is $67,000, but this can be adjusted to personal needs.
- **Target Goal** [01:39] — The video sets a target of $2,900 per month or $35,000 per year in dividends for the example person, John.
- **Understanding Dividends** [01:53] — Dividends are portions of a company's profit distributed to shareholders, often paid quarterly in cash or reinvested.
- **Dividend Yield Calculation** [02:49] — Dividend yield is calculated by dividing annual dividends per share by the price per share; example: $10 dividends on a $100 stock gives a 10% yield.
- **Strategy 1: Covered Call ETFs** [04:03] — Covered call ETFs generate income from stock appreciation and option premiums, offering yields often in double digits (e.g., XYLD 11.83%, OILK 11.82%, EWZ 11.81%).
- **Investment Needed for Covered Call ETFs** [06:04] — To earn $35,000/year with covered call ETFs, John would need to invest approximately $280,000, compared to $2 million for traditional dividend stocks.
- **Strategy 2: High-Yield REITs** [07:00] — REITs invest in real estate and distribute income; examples include Two Harbors (20.3% yield), Brandywine Realty (19.9%), and Orchid Island Capital (19.4%).
- **REIT Performance and Investment** [08:07] — REITs have an average annual return of 10.8% over 20 years; to earn $35,000/year, John would need about $320,000 invested, potentially achieving financial independence in 5-7 years.
- **Strategy 3: Dividend Aristocrats** [10:15] — Dividend Aristocrats are S&P 500 companies that have increased dividends for at least 25 consecutive years, averaging around 7% yield (e.g., 3M, Leggett & Platt, Walgreens).
- **Investment Needed for Dividend Aristocrats** [11:45] — With a 7% yield, John would need to invest $500,000 to achieve $35,000/year, which is a fraction of the $2 million needed for traditional dividend stocks.

### Conclusion

The video concludes that living off dividends is achievable through strategic investments in covered call ETFs, REITs, or Dividend Aristocrats, each with different risk and capital requirements. It emphasizes the importance of planning and consistency to reach financial independence.

## Transcript

money works for you where the clink of coins in your pocket is replaced by The Sweet Sound of dividends hitting your account picture a world where Financial Freedom isn't just an idea but a tangible reality this is not some
far-off dream it's within reach just like retiring comfortably means different things to different people there are countless Financial scenarios to consider some people might explore reverse mortgages selling off
possessions or moving to an affordable place but there's another option that often gets overlooked living on investment dividends something that can dollars a month stick around because we're going to
share three fast ways to get to that goal so what's this secret sauce for determining your ideal investment amount it all comes down to your desired lifestyle and of course the numbers sure the average guy spends around sixty
seven thousand dollars a year but that might not be the right Benchmark for you you can adjust based on your specific needs aspirations and level of comfort now let's add a touch of intrigue picture this a life where your
Investments generate a consistent income stream allowing you to enjoy the fruits of your labor without touching your principle it's like having a secret money tree that keeps growing and providing for you with passive dividends
the possibilities become enticing remember this journey is about finding the balance that aligns with your dreams so take a moment to picture your future visualize the kind of life you want to lead and then let the numbers guide you
towards the investment amount that'll make dividends your ticket to Financial Freedom for this video we'll show you and John on how to hit the target of twenty nine hundred dollars a month or thirty five thousand dollars a year
before that let's understand dividend and how it works imagine you're a part owner of a company by owning some of its stock when that company makes a profit they have choices on what to do with it they can use the profit to grow the
company or give it to their owners in the case of publicly traded companies the owners are the shareholders like John if a company decides to distribute some of its profit to shareholders it's called dividends as a shareholder John
would receive a portion of that profit based on how many shares he owns dividends can be given as cash either through a digital deposit or a check or they can be reinvested in more shares of the company's stock companies have
different schedules for paying dividends but many do it every three months now let's talk about dividend yield this is a way to measure how much you're earning from dividends compare compared to the price of the stock it can vary from
company to company and even change for the same company over time generally more established companies offer higher dividend yields than smaller newer ones now to calculate dividend yield it's quite simple you take the annual
dividends per share and divide it by the price per share for example if John's stock is priced at 100 per share and he receives ten dollars in dividends each percent understanding dividend yield helps John
evaluate his investment he can compare different stock prices and make smart decisions based on his goals and how much risk he's willing to take by investing in dividend-paying stocks John has the potential to earn regular income
without needing to sell his shares this means he can enjoy a steady stream of money while still keeping his investment intact which is pretty fantastic so for John and anyone else interested in earning passive income dividends can be
a compelling strategy to consider it's a way to grow your wealth over time and live off the income generated by your Investments now let's take a dive into three simple strategies that can help John achieve his goal of earning twenty
nine hundred dollars per month or thirty five thousand dollars per year through dividends strategy number one covered call ETFs one of the quickest paths to living off dividends is by investing in covered call ETFs these unique funds
offer investors the opportunity to earn income from both stock appreciation and dividend payments how does it work well the ETF invests in stocks and also writes call options on those same stocks to generate additional income call
options give the buyer the rights but not the obligation to buy a stock at a specific price within a certain time frame so when the ETF sells call options on the stocks in its portfolio it receives premium income that is paid out
as dividends moreover if the stock price rises above the call options strike price the ETF May realize capital gains because it'll be required to sell those stocks there are several popular covered call ETFs to consider such as xyld oil K
call ETFs to consider such as xyld oil K and ewz These funds offer attractive yields often in the double digits which are significantly higher than the yields in many traditional dividend stocks let's take a look at their 12-month
trailing yields xlyd has a yield of 11.83 percent xlyd has a yield of 11.83 percent oilk has a yield of 11.82 percent oilk has a yield of 11.82 percent ewz has a yield of 11.81 percent the
ability to provide income from both dividends and option premiums resulting in a more stable and reliable stream of passive income however it's essential to understand that these ETFs come with some risks for instance options May
expire worthless or the stock prices May decline impacting the overall performance now let's apply this strategy to John's Journey if John aims to earn twenty nine hundred dollars per month which equates to thirty five
thousand dollars per year through covered call ETFs we can adjust the figures of accordingly based on the current yield levels John would need an investment ranging from approximately two hundred eighty thousand dollars to
that's quite appealing isn't it especially when compared to traditional dividend stocks where you would need around 2 million dollars invested to achieve the same level of income by choosing covered called ETFs John can
thirty five thousand dollars per year or twenty nine hundred dollars per month without needing an excessive investment this strategy offers an opportunity to generate a steady income stream while
minimizing the capital required so if John is eager to embark on this path he can explore covered call ETFs as a means to fulfill his dreams of living off dividends and enjoying Financial Independence let's explore another way
for John to earn thirty five thousand dollars per year or twenty nine hundred dollars per month through dividends this strategy involves investing in special companies called real estate investment trusts or REITs for short strategy
trusts or REITs for short strategy number two high-yield REITs REITs are like teams that invest in real estate properties like malls offices and apartments these teams make money from these properties and share some of it
with people who invest in them for John there are some great reads to consider if he wants to earn passive income from dividends these include Two Harbors Investment corporation which has a dividend yield of 20.3 percent
Brandywine Realty Trust with a dividend yield of 19.9 percent and Orchid Island Capital Incorporated offering a dividend yield of 19.4 percent these REITs have a
track record of providing their investors with a consistent income stream through dividends historically REITs have shown solid performance with an average annual return of 10.8 percent over the past 20 years this means that
investing in REITs can be a smart way for John to potentially grow his wealth while earning a steady income it's important to know that the amount of money you get from REITs can go up and down because it depends on how many
people rent the properties and how the economy is doing while REITs can give you more money than regular stocks they can also be risky when the economy is not doing well so how much does John need to invest to earn 35
000 per year from REITs if he expects to get around 10.8 percent each year he would need to invest about three hundred twenty thousand dollars but this number chooses to put his money in different REITs or just one a good way for John to
retire with REITs is to save and invest a certain amount of money every week and let the dividends add up until he reaches his goal if he stays committed and patient he could become financially independent in about five to seven years
when Investing For dividends it's important for John to have a plan he needs to know how much money he needs and what he wants to achieve this will help him choose the best REITs for his portfolio and make sure he sticks to his
his plan over time everyone's situation is different so John might find that he can live happily with less than thirty five thousand dollars per year or he might need more if he has a family or certain lifestyle preferences one great
thing about REITs is that unlike regular stocks they often pay dividends every month this makes them an even more attractive choice for people who want a steady income from the stock market by considering the strategy of investing in
REITs John can achieve his financial goals of earning thirty five thousand dollars per year or twenty nine thousand dollars per month from dividends it's a strategy that could turn his dream of living off dividends into a reality so
if John is ready to take a step toward Financial Independence exploring the world of REITs is a smart move it's a strategy that has the potential to make his dreams come true strategy number three dividend Aristocrats dividend
belong to a group of company companies in the S P 500 Index these Hawks have a unique record of increasing their dividend payments to shareholders for at least 25 years in a row they're considered great options for people who
Investments some of the top dividend Aristocrats are 3M Leggett and plat and Walgreens boots Alliance these corporations on average pay close to a seven percent dividend yield which is lower than covered call ETFs and REITs
but they are very consistent in paying out those dividends dividend Aristocrats are known for consistently raising dividends year after year to be part of its dividend payout for at least 25 consecutive years whether it's a good
idea to invest in these stocks depends on your own goals timeline and how much companies that make up the dividend Aristocrats come from different Industries but they share some common traits apart from Raising dividends
regularly they are well-established companies that have shown growth over time they're usually big companies that are less likely to be bought out by perform better during tough Economic Times which helps them generate
consistent profits so how much does John have to invest to meet his goal of twenty nine hundred dollars per month considering a seven percent dividend yield John has to invest five hundred thousand dollars to be completely
independent though it may be a huge investment compared to the traditional dividend stock which would need an investment of two million dollars this is a fraction but with the same payout a good idea for John is to spread his
Investments across multiple dividend Aristocrats to reduce Risk by investing in dividend Aristocrats John has the potential to receive regular income from his Investments these stocks have a strong track record of increasing
dividends and their inclusion in the S P 500 Index adds credibility to their performance unsure where to find investment potential for generating income watch the video on your screen the top seven monthly dividend ETFs to
earn income fast track your dividend income goals with expert and easy income goals with expert and easy guidance