Dividend-Yielding Stocks – Passive Income Series

Share on facebook
Share on twitter
Share on linkedin
Share on reddit

If you’d like to invest your money in a company with dividend-yielding stocks, you’ll receive a dividend check a few times a year without having to do anything other than put in your initial investment. These dividends depend on how many shares of stock you own, so it’s a good way to invest a larger sum of money.

You’ll also want to put in some research effort for this passive income stream. Choosing the right stocks is essential. You want something that’s going to increase in value over time, not decrease.

Spend at least a couple of weeks investigating each company you’re considering, so you’re familiar with their financial statements and can tell whether or not they’re likely to go up in value.

John H. Graves has another recommendation for dividend stocks, especially for novices: try ExchangeTtraded-Funds (ETFs).

These are investment funds that hold assets such as stocks, commodities, and bonds, but they trade like stocks. They’re easy to understand and inexpensive compared to regular dividend stocks. They cost less than mutual funds and are easy to liquidate when you need to.

Another big risk (besides picking the wrong stocks) is that stocks and ETFs can drop in value significantly if the market takes a downturn (as it did early in the global pandemic).

Save, Save, Save!

Talk about your passive income streams! How much more passive can you get than socking your money into a high-yield savings account and just watching the interest add up?

We’ve all enjoyed this benefit since childhood: going down to the bank and opening up an account with our lawn-mowing earnings, then watching eagerly as those pennies compound.

So long as the bank you choose is backed by the FDIC, your risk with this stream of income is pretty low. Just save up a few thousand dollars and aim for the highest interest rate possible.

Online banks can have interest rates that are 10 times more than your local brick and mortar bank (sometimes even more than that). Just do a bit of homework and make sure they’ve got that official backing to protect your investment.

You can even transfer money from your primary bank to the online one (and vice versa). This is a simple method of earning that just requires that initial investment of cash. The more you have, of course, means the more you earn in the end. There’s almost no risk at all if you’ve got that FDIC insurance up to around $250,000.

The only problem that might arise if the economy weakens. In that case, the interest rates will tend to drop and you won’t get as much of a payout as you would otherwise.

Comments

Leave a Reply

Responses

Recent Posts

Sign up for our Daily News Briefing

BLKISH News provides the best coverage of current events, curated by expert editors. Enjoy breaking news sent directly to your inbox.

Get daily news delivered to your inbox. 

Black Social Network

Stronger Together

Social Community

Blkish Academy

Business Directory

Events

Connect & Prosper

Lifestyle Blog

Forge Your Kingdom...

Community is Everything: Build your tribe, create a community of like-minds, who will give you the strength to act on ideas and inspire you to be the best version of you.

Explore the diverse cultures, expressions of heritage, and boost self-confidence by taking online courses within the Blkish Community.

Community

Connect, Share, & Grow! Share your stories!

Mobile Friendly

Access the community from any device.

Buy Black

Thousands of minority-owned businesses at your fingertips.