On the Internet, so many people talk about passive income. Many people believe that building a website or blog can generate passive income. From my experience, this income is not passive at all, it’s very active. Today, I want to share the truest source of passive income (in my humble opinion) – dividend paying stocks. Learn how an investment in dividend stocks can allow anyone to make passive income (earn cash flow while they sleep).
Today’s video starts out with a practical example. Right now, in 2018, I share how anyone can drive $50/month in passive income via an investment in Procter & Gamble (a dividend paying stock pick). With a starting dividend yield of 3.6% ($2.868 per share per year in dividends). It will take one $16,574.59 of capital invested (or 209.28 shares of PG) to earn $600/year in dividends (or $50 per month). While it’s certainly no easy feat to save up the investment capital required, this is true passive income that would last forever, generationally (as long as Procter & Gamble continues to perform well as a company).
Next, I transition into my very own Louis Vuitton bag! A subscriber suggested in my last video, a review of L Brands, that I bust out a Louis Vuitton bag. Ask and you shall receive. Learn how luxury items like this can set one back in their journey for passive income. Generating large amounts of passive income requires investment capital. When one splurges on luxury goods, it’s so much more difficult to reach one’s investment capital goals. I don’t buy these types of luxury items very frequently anymore and learned my lesson the hard way!
I also discuss the importance of celebrating micro goals in today’s video. I often get so caught up in my goal of complete financial independence that I forget the successes along the way. Using today’s example, let’s say one started and stopped with $50/month. That alone is a huge accomplishment and should be celebrated. A reminder to myself and others: Financial freedom is exciting, but don’t forget the enjoy and celebrate the cash flow being generated along the way. Every $50/month in cash flow generated pays for a nice dinner out, every single month, forever!
Before closing out, I also share how dividends tend to grow over time. I’m a huge fan of dividend growth stocks (like Procter & Gamble). That $50/month could become $89.63/month in 10 years time. And, there’s capital appreciation opportunity too!
Discussed in today’s video, here’s my L Brands analysis:
Here are 10 dividend stock picks I’m buying right now, in 2018:
Here’s one of my favorite videos yet, my celebration of 10,000 subscribers and 10 subscriber questions answered:
Here are the top 5 mistakes I have made in the stock market and personal finance:
Disclosure: I am long Procter & Gamble (PG). I own this stock in my stock portfolio.
Disclaimer: I’m not a licensed investment advisor, and PPC Ian videos, Excel files, and content are just for entertainment and fun. PPC Ian videos, Excel files, and content are NOT investment advice. Also, I’m not a tax advisor and PPC Ian videos, Excel files, and content are NOT tax advice. Please talk to your licensed investment advisor before making any financial decisions. Please talk to your licensed tax advisor before making any tax decisions.
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