These are stocks out in the market that have a proven track record of paying dividends regularly that could be your passive income. Examples are companies such as Wells Fargo that have, at the time of this article, a dividend yield of about 8%.
Other companies include Johnson & Johnson, Coca-cola or oil & gas companies such as ExxonMobil. While the dividend payout may seem little, do know that it is still money generated from you doing absolutely nothing at all but parking your money in these companies.
While $1000 may generate you only $80 per year if invested in a stock with a dividend yield of 8%, imagine having invested $100,000 or $1,000,000 which can give you that additional income and let your money do the work for you.
Additionally, countries such as Singapore have tax exemptions for dividends that enable you to save even more money than if the income was to come from work. Start investing at a young age, and you will maximise your returns from dividend stocks via passive income.
These are relatively less risky options whereby you do not have to deal with a loss in the capital value of your investment should things go awry. However, the interest rate that you receive is generally considerably lower than if you were to invest in a dividend stock electronically traded fund.
These kinds of investments are more suitable for risk-averse investors such as those in retirement that want a steady flow of income to get by rather than banking on tremendous capital gains.
There are tons of different websites or applications that enable you to exhibit your abilities and skills for money. Depending on your skillset, you can practically do anything and earn passive income in the form of advertisements when viewers click on your product.
Here is a shortlist of what kind of websites you can look towards if you have a particular skill
The difficulty in these platforms is mastering the algorithms associated with them. For example, a YouTuber should learn how to monetise his or her videos before uploading them properly. In doing so, he or she would understand the tips and tricks, such as having family-friendly content, necessary to propel his or her YouTube career into the next level.
Anyone can pick up a camera, film themselves and upload them on these platforms. You only fail if you do not try, so what’s stopping you if you have something interesting or informative to share?
Alternatively, creating content is not limited to video production. One can also dabble in the art of building a website or application.
With tools such as WordPress, Cloudflare or other hosting services readily available on the Internet, it is no wonder why countless of new websites are sprouting about.
Picking up skills such as application development is no longer limited to technical specialists. As long as you have a new or exciting idea, there are countless videos available on YouTube or other websites like StackOverflow that will be able to teach you the basics to kickstart your developer career!
E-commerce websites like Amazon and Alibaba work on the premise by having a buyer and a seller. Creating a store on those websites is as simple as creating a seller’s account, and you can purchase the products from manufacturers while selling them to buyers on the e-commerce website.
This enables you to mitigate the risks of holding any inventory as you only need to have the manufacturer deliver it directly to the buyer’s shipping address. After that, sit back and collect the profits from the mark-up that you set for connecting the buyer and seller.
There are countless dropshippers on the Internet because there is a ton of money to be made. Some become insanely rich just by dropshipping products with a high-profit margin such as cheap watches or accessories.
In the age of the Internet, it is becoming increasingly easy to earn a passive income through so many different means. The only question is the risk appetite and opportunity cost of using that $1000. Take some time to develop a skill in the areas that can help you generate a steady passive income, rather than spending it unnecessarily. You will be surprised by the results that you can produce!