Dividend payments are not necessary for every company but many companies pay dividends to their shareholder when they have lots of money/profit.
For example, a Z company issues a $2.0 dividend per share, meaning a person who has 300 shares of a Z company gets $600 in dividend income.
These "stocks consistently increase their dividends for at least 25 years (Dividend Aristocrat) and 50 years (Dividend Kings)
To earn $1000 per month you have to think of a $12000 annual dividend which is equal to the company's dividend yield.
Let's assume the Phillips stocks price is $200 and they pay a regular annual dividend which is on average $8 (4% Dividend Yield)
Now to generate $12000 a year ($1000 monthly) you need at least ($12000/4%) $300K total capital or 1500 Phillips stocks according to the $200 price.
That capital is only for example. In real you can make $1000 a month with $200K capital or it may be $600K depending on how much dividend yield you are getting.
1. Focus on regular and strong dividend yield.
2. Reinvest your dividend income.
3. Diversify Portfolio for consistent returns.
You can also join dividend communities and forums where you can learn more about dividend investing.
Pro Tip