Hi,

I have a question on how many of shares of a company to buy for an approximate target monthly income in dividends.

For example, if I want to earn approximately HKD 500/month in dividends from (say) the CLP stock, is this how I calculate how many shares I would need to purchase? (assuming, of course, that dividends are approximately the same every year and *not* taking any fluctuation of stock price into account).

Step 1:
Approximate dividend for the past year (2013): (I am looking at http://www.aastocks.com/en/stock/Com...9&symbol=00002)
= (0.53+0.53+0.53+0.98)/4 = 0.6425 average dividend per share for the quarter

Step 2:
I want HKD 500 / month which is HKD 1,500 per quarter. So, in order to determine how many shares I would need to get a dividend of HKD 1,500 per quarter, I would divide 1500 by 0.6425
Which is: 1500/0.6425 = 2334.6

Step 3:
CLP sells for (app) HKD 64.75, so I multiple 2334.6 by 64.75
Which is: 2334.6 * 64.75 = HKD 151,167

Excluding brokerage charges and dividend collection charges, if I were to purchase 2334 shares of CLP at HKD 64.75 and if the dividend does not change, then I can make HKD 500/month in dividend income from it. Is that right?

Something tells me my math isn't quite right!