All It Takes Is $10,000 Invested in Each of These 3 Dividend Stocks to Help Generate $1,239 in Yearly Passive Income
These stocks offer high dividend yields, rising payouts, and businesses that can afford to support their dividends.
All It Takes Is $10,000 Invested in Each of These 3 Dividend Stocks to Help Generate $1,239 in Yearly Passive Income
Overview
Many investors turn to income-generating stocks for passive income. This makes sense, as some companies have built a decades-long reputation of increasing dividends periodically, which can serve as an inflation hedge. Investors might also like the long-term potential for stock price appreciation, which can increase their overall wealth.
Nonetheless, dividend stocks come with significant risk. No companies -- other than real estate investment trusts (REITs) in specific situations -- are required to pay a dividend, and they have the power to reduce or even eliminate a payout at any time. Additionally, the average S&P 500 stock pays an abysmal dividend yield of 1%, comparing poorly to bonds and CDs.
Details
Still, stocks that have increased payouts annually for years face tremendous pressure to maintain those streaks, so much so that approximately $10,000 invested in each of these stocks (about $30,000 total) could yield around $1,239 in annual passive income. Given that potential, income investors might want to consider these stocks.
Source
Originally published at www.fool.com.
