How do you make a profit with stocks?
1. You hope that the price is going up
2. You collect Dividends
With Dividends you will make around 3% per year some companies will pay a
little more some a little less. To cover your living expenses just from Dividends
you need a quite substantial capital. E.g., you want $5000 per month, and you
get an average of 4% dividends, you need to invest $1.5 Million.
If you hope for profits from stock prices going up, you might have great years and
years where you can’t take any money without reducing your capital and
damaging your future earnings potential. That might be a good long-term strategy to grow
your wealth but not one that will supply you with any income.