Published on 24 Mar 2024 on Motley Fool via Yahoo Finance
Forget Buying a Rental Property: Investing $50,000 in These Ultra-High Dividend Yield Stocks Could...
The internet is awash with claims that the secret to financial independence is buying real estate and renting it out as "passive" income. The problem with real estate investing is that it is not as passive as the internet claims. Maintaining a rental property requires work, as landlords must manage tenants, fix damage, and continuously search for occupants.
There are better ways to generate passive income with your savings. Enter dividend stocks. These are stocks that regularly give shareholders cash payments in the form of dividends. And the best part is, it is actually passive income, requiring zero work on your part. All you have to do is click the buy button, hold on to your shares, and, like magic, you have a new income stream.
Forget buying a rental property. With $50,000, you can buy these two stocks and get approximately $4,500 each year in passive income.