💰How to earn passive income with dividends

read time 2 minutes

Hi there,

Imagine your money working for you; while you sleep, while you travel, while you live your life. That’s the magic of earning passive income through dividends.

Here’s how it works and how you can get started.

What are dividends?

Dividends are pieces of a company’s profit that it decides to share with shareholders. When you own shares of a dividend-paying company, you can receive regular cash payments without having to sell the shares.

Step-by-step: Building your dividend income

1. Open a brokerage account. Through Fidelity, Vanguard, or Charles Schwab.

2. Choose dividend-paying stocks. Look for companies with a history of paying and increasing dividends.

3. Diversify across sectors. Don’t rely on one company or one industry - spread your income sources.

4. Reinvest or collect. Let dividends reinvest to compound growth, or use them as income if you’re already established.

5. Monitor and adjust. Keep an eye on dividend sustainability - high yields can be tempting but risky.
   
   

If you want to take it one step further, invest in a dividend king. This is a company that has increased its dividend payout for at least 50 consecutive years. Here are the top five ranked by the longest consecutive dividend increase:

• Procter and Gamble: increased dividends for 68 years.
• Genuine Parts or GPC: increased dividends for 69 years.
• Northwest Natural Holding: increased dividends for 69 years.
• Dover Corporation: increased dividends for 69 years.
• American State's Water: increased dividends for 70 consecutive years, longer than any other company.
  
  

You don’t need to chase fancy schemes to make more money. You just need to start. Pick quality dividend payers, be consistent, reinvest, and let time do most of the work. The sooner you begin, the sooner that passive income stream starts to grow.

Learn more about dividends in my step-by-step guide to making your first $100,000. Get started here.

Using my affiliate link helps support my team and I to create new content for you every week. Thank you! 

- Milan and Team

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