Passive Income


Many people do not have any passive income. Having said that, I know that some people have it even thought the economy is not doing so well these days. Having a passive income is one of the best ways to get rich and ensure that you have some money even if your business does not generate large profits. Of course, the higher your passive income, the faster you can become rich. In my opinion, it is not how big your passive income is. It is all about managing it. If you decide to invest some of your money, you might be able to see how your monthly income is going to grow. This is one of the best ways to insure a better future in a down economy. There are many ways that you can ensure that you will have some passive income:

-If you own a stock that pays dividends, then this can be one form of passive income. It is generally pretty safe, as stocks that pay dividends are usually rock-solid.
-Renting out your property can result in passive income as well. Some people who live in a big house may decide to rent out a room or two. This might be an especially good idea if you live in some attractive location.
-Any successful investments may also be a form of passive income.

There are many ways you can have passive income and it depends on your circumstances which method is the best for you.

10 thoughts on “Passive Income

  1. I have even noticed an upsurge of prana along busy roadways and freewaysFirst and foremost, a Babyliss curling iron will most likely have the newest ceramic technology incorporated into it as all Babyliss products do Martial arts books also help you in learning the history of sport, various skills and the importance behind the art Wal

    • You can enter stock screener’ as a web sarech, and you will find a number of free sites that enable you to enter your own criteria. I like Yahoo finance or Marketwatch .comIf you like, I can e-mail you a high yield protfolio that I have set up on Yahoo.

    • Like Clif, I am an early retiree who reeils on dividends for an (in my case, modest) income stream. I disclose this so the reader can place this review in perspective. The thesis of this book coincided with my own investing philosophy, so I anticipated both friendly and familiar ground, but the author argued persuasively the advantages of dividend-paying stock strategy over alternatives, and he provided sufficient detail on the analysis of the dividend aspect of equities to improve my knowledge in this area. The book’s thrust is that you may be better off receiving income via dividends than regularly selling off stocks from your portfolio or relying on fixed income instruments. Moreover, even if you are a long-term investor looking for a modicum of growth and not only immediate income, the author confirms the value-investing maxim that div-payers tend to perform better than non-div stocks over the long term. And to me perhaps the most convincing construction, also proposed by the book Active Value Investing, is that if you are going to own a stock and that stock’s performance is flat or down for relatively long periods of time (say, during range-bound or bear markets), would you not want the stock to pay you for holding it in the meantime? The author uses a variety of methods to analyze how to select dividend-payers that are likely to continue paying, and increasing, their dividends. He focuses on ROE vice cash flow, and explains why. He also reveals his own portfolio. One nit-pick is the promotion of his newsletter, which is common among investing authors but nonetheless detracts a bit from the point being made. It is worth noting that this book was put to bed mid-2007, so his fairly unalloyed praise of REITs should be viewed in that context. He does somewhat presciently warn on the risks of bank dividends. Naturally, the principles of dividend investing apply, generally, regardless of the prevailing market condition, and the author also correctly cautions against the tendency to chase the highest dividend yields at any particular time rather than looking at a stock’s dividend yield/growth history and other relevant factors. Many financial advisors and institutions recommend either singly or in combination the fixed income (bonds, annuities) or sell x% of your stock portfolio each year method of generating investment income streams. The author offers the dividend-stream approach as an equally viable consideration for the long-term investor. And finally, what the reader should expect from this book is less a list of what stocks to buy than here’s how to pick solid dividend-paying stocks, and here are the ones I selected.

  2. Pingback: America’s Oldest Dividend Paying Stocks – Part 4 | Wall Street Stocks

    • - finally! I lsleciapey like the JavaScript where you can get dividend yields by mouse-over – saves me a trip to BigCharts.Now if only they can get out of Beta version and actually have something that doesn’t crash all the time. Now I think about it, it crashes almost everytime I use it ;)

  3. Pingback: The Oldest Dividend Paying Stocks in America – Part 3 | Wall Street Stocks

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