Got $1,000? This Dividend Stock Could Fund Your Coffee Habit for Life.
Written by Matt DiLallo for The Motley Fool -> At the low end, the average person drinks $11 in coffee each month. A $1,000 investment in AGNC Investment could generate enough monthly income to offโฆ
At the low end, the average person drinks $11 in coffee each month.
A $1,000 investment in AGNC Investment could generate enough monthly income to offset that expense.
If you're like me, you can't go a day without coffee. Turning on the coffee maker is usually one of the first things I do in the morning. All that coffee really adds up over the year.
What if I told you that you could potentially fund your coffee habit for life for around $1,000? Here's one high-yielding dividend stock that could generate enough income to buy you a lifetime of coffee in the morning.
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The cost of coffee ranges widely. A specialty brew at your local coffee shop can cost more than $6 per cup these days. Have one of those a day, and you're going to spend about $2,200 a year. However, if you brew your coffee at home, the cost is typically $11 to $20 per month, depending on what you buy and how often you have coffee.
It only takes about $1,000 to fund the low end of the average person's annual at-home coffee habit with the right dividend stock. For example, AGNC Investment (NASDAQ: AGNC) , a real estate investment trust ( REIT ) that invests in residential mortgages, currently yields 13.3%. That's a monster yield, as the S&P 500 currently yields only around 1%. At AGNC's rate, a $1,000 investment would generate about $133 in annual dividend income, or a little over $11 per month (AGNC pays a monthly dividend ).
AGNC has a solid record of paying dividends. It just notched its 75th straight monthly dividend at its current rate . The REIT believes it's in a solid position to sustain its dividend in the current environment.
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