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Dividends: The Ultimate Form Of Passive Income
Posted on | May 13, 2011 | 1 Comment
The term passive income is thrown around a lot these days considering the new American Dream is essentially to quit your job and be able to work from home and make a nice living from your living room. Passive income is the holy grail of all entrepreneurship and investing. Passive incomes though have varying degrees of passivity.
Some say that running a blog is passive income. Those people likely haven’t run a blog before.
Dividend stocks, however, represent true passive income since they generate cash flow and income while you do nothing. The problem is most people fail to accumulate enough shares of dividend stocks to create enough meaningful and impactful income.
If dividends are ultimate passive income, the goal then is to grow our dividend portfolio as big as possible. The best way to do this is to utilize compounding (reinvesting) dividends and returns and to buy bulk purchases of shares at super valuable levels. Most people understand the first part in compounding and reinvesting dividends, but they put zero effort into monitoring the market and specific stocks to identify compelling times to allocate massive amounts of capital to dramatically increase positions with cheaply bought shares. This is the key to a large portfolio, allowing both of these forces to work in tandem.
If you’re ready to begin this process, then you’re at the right website. I will help you do the following over the coming days, months and years:
- Identify the best dividend stocks that will generate superior long term returns
- Identify the appropriate levels where additional capital can be unleashed to buy cheap shares
- Identify times when it might make sense to hoard cash rather than buy shares, saving the capital for better buying opportunities
- Encouraging you to build your positions rather than trade in and out of them.
Over time, you too can build an impressive portfolio that will be the anchor of your future passive income enabling you to do more things in your life than you ever dreamed before.