Selurio · Blog
How Many Shares Do You Need for €1,000 of Passive Income a Month?
"I want to live off dividends." It sounds like a dream, but it is really a one-line calculation. Passive income from dividends does not depend on luck or timing — it depends on two numbers: how much capital you have and what the dividend yield of your portfolio is.
The formula is simple
Annual dividend income is simply:
Annual income = Capital × YieldFlip it around and you get the most important question — how much capital you need for a given income:
Required capital = Target annual income / YieldSo for €1,000 a month, that is €12,000 a year, with a portfolio at a 4% dividend yield you need:
€12,000 / 0.04 = €300,000If the average share price is €50, that is about 6,000 shares. That is all.
Yield changes everything
The same goal — €1,000 a month — requires very different capital depending on the yield:
| Dividend yield | Capital needed for €1,000/mo |
|---|---|
| 3% | €400,000 |
| 4% | €300,000 |
| 5% | €240,000 |
| 6% | €200,000 |
| 8% | €150,000 |
At first glance the takeaway is "seek a higher yield." But here is the trap you need to be honest about.
A high yield is not a free lunch
A very high dividend yield is often a risk signal, not a bargain. There are two reasons:
- The price has fallen. Yield is the dividend divided by the price. If the price halves, the yield doubles — but that usually means the market expects trouble.
- The dividend can be cut. A company in trouble cuts the dividend first. Then "an 8% yield" turns into 3% overnight, and the price falls further.
That is why a sustainable 3–4% from a diversified portfolio usually beats a fragile 8% from a single troubled company. Passive income only makes sense if it is durable.
And the tax?
In most jurisdictions dividends are taxed. If we assume a 5% tax, then to receive €1,000 net a month at a 4% yield you actually need a little more capital, because your effective yield falls to 3.8%.
The calculator lets you include tax as an assumption — but be careful: this is not tax advice. Tax rules differ and change; for real amounts check the current rates for your situation.
Try it yourself
Change the goal, the yield, and the share price and see how the required capital changes:
Open the calculator with the example above — €1,000 a month at 4%. Then switch to "Income from portfolio" mode to see what income the amount you already have or plan for would produce.
Assumptions
- Constant yield. Real dividends change every year; the calculator assumes an average value.
- Tax is an assumption, not tax advice, and is off by default.
- The number of shares is indicative, at the average price entered.
- The results are hypothetical and not a recommendation for any particular dividend stock.
Continue reading
- Compound interest — the eighth wonder of the world — how to build the capital that will later pay dividends.
- Retiring at 40 in Bulgaria — passive income is the heart of any FIRE plan.
- Real return and inflation — because €1,000 today is not €1,000 in 20 years.
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