This 3.3% Dividend Is Actually A 7.7% Payer

This 3.3% Dividend Is Actually A 7.7% Payer

It is challenging to find stocks that pay enough money to retire on. For example, even a 3. 3% dividend“”generous by today's standards“”isn't enough to turn a $1, 000, 000 into an income stream that will last forever. I'll save you the math. It's just $33, 000 per year on a million dollars. Fortunately, this same dividend yield is understated on most mainstream financial websites. In reality, this stock paid 7. 7% over the past twelve months. Which means its millionaire investors actually earned $77, 000 in dividend income. Yes, you read that right. There was an extra $44, 000 hidden in plain sight thanks to a "special" dividend payment. Three Kinds of Special Dividends Most investors are familiar with "regular dividends," which are simply recurring cash payouts doled out regularly“”once or twice a year, typically quarterly, or when we're lucky, monthly. A special dividend, by comparison, is a one-time, typically non-recurring payout. Sometimes companies pay these in addition to their regular dividends. Sometimes, companies with no regular dividend will nonetheless throw out a special payment. Every now and then, a company will report out-of-this-world profits, and they decide to share the excess wealth with shareholders. Such was the case