Question: how much money would you need to live off dividends?
Answer: The answer is: $50,000/0.0375, or $1.33-million. Think you could get by on $40,000? You'd need a portfolio of $40,000/0.0375, or about $1.07-million. If you assume a higher dividend yield of, say, 4 per cent, you'd need a portfolio of $40,000/0.04, or $1-million.