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On the Internet, so many people talk about passive income. Many people believe that building a website or blog can generate passive income. From my experience, this income is not passive at all, it’s very active. Today, I want to share the truest source of passive income (in my humble opinion) – dividend paying stocks. Learn how an investment in dividend stocks can allow anyone to make passive income (earn cash flow while they sleep).
Today’s video starts out with a practical example. Right now, in 2018, I share how anyone can drive $50/month in passive income via an investment in Procter & Gamble (a dividend paying stock pick). With a starting dividend yield of 3.6% ($2.868 per share per year in dividends). It will take one $16,574.59 of capital invested (or 209.28 shares of PG) to earn $600/year in dividends (or $50 per month). While it’s certainly no easy feat to save up the investment capital required, this is true passive income that would last forever, generationally (as long as Procter & Gamble continues to perform well as a company).
Next, I transition into my very own Louis Vuitton bag! A subscriber suggested in my last video, a review of L Brands, that I bust out a Louis Vuitton bag. Ask and you shall receive. Learn how luxury items like this can set one back in their journey for passive income. Generating large amounts of passive income requires investment capital. When one splurges on luxury goods, it’s so much more difficult to reach one’s investment capital goals. I don’t buy these types of luxury items very frequently anymore and learned my lesson the hard way!
I also discuss the importance of celebrating micro goals in today’s video. I often get so caught up in my goal of complete financial independence that I forget the successes along the way. Using today’s example, let’s say one started and stopped with $50/month. That alone is a huge accomplishment and should be celebrated. A reminder to myself and others: Financial freedom is exciting, but don’t forget the enjoy and celebrate the cash flow being generated along the way. Every $50/month in cash flow generated pays for a nice dinner out, every single month, forever!
Before closing out, I also share how dividends tend to grow over time. I’m a huge fan of dividend growth stocks (like Procter & Gamble). That $50/month could become $89.63/month in 10 years time. And, there’s capital appreciation opportunity too!
Want to learn more about investing in dividend stocks for passive income? Don’t forget to subscribe!
Discussed in today’s video, here’s my L Brands analysis:
https://www.youtube.com/watch?v=lCBd8NjOBs8
Here are 10 dividend stock picks I’m buying right now, in 2018:
https://www.youtube.com/watch?v=L1d5xUM8dnY
Here’s one of my favorite videos yet, my celebration of 10,000 subscribers and 10 subscriber questions answered:
https://www.youtube.com/watch?v=YeHOKjVftf4
Here are the top 5 mistakes I have made in the stock market and personal finance:
https://www.youtube.com/watch?v=nC-pQ56FlK4
Disclosure: I am long Procter & Gamble (PG). I own this stock in my stock portfolio.
Disclaimer: I’m not a licensed investment advisor, and PPC Ian videos, Excel files, and content are just for entertainment and fun. PPC Ian videos, Excel files, and content are NOT investment advice. Also, I’m not a tax advisor and PPC Ian videos, Excel files, and content are NOT tax advice. Please talk to your licensed investment advisor before making any financial decisions. Please talk to your licensed tax advisor before making any tax decisions.
All PPC Ian videos, Excel files, and other content are (c) Copyright IJL Productions LLC.
Your video is useless… all this talk about $50/mo!!! If it were 2K or 3K it'll be okay, but $50 🙁
I'm going to have $300.00 bucks a month coming next year. That's because I worked for a company that offered a pension for 10 years or more. 😊
Ones who followed your advice in July 2018 and bought Pand G must love you as the stock price went from around 80 to now 120… in 15 months… too bad I did not know your channel then… Thank you and please keep it up 🙂
Expendablemoneysolution,com just added funds into my PayPal account
It’s funny how he have a face expression like he is discovering gold, just to explain dividends, …. these youtubers these days ….
With all due respect, I need more than $50 in passive income… like, to cover $3,000 a month in living expenses, I need millions!!!!!!!!!
you should get to a point when your passive income will get you in a position where you wont ask the price of anything, that's when you are financially free!!
Buy Vuitton shares (LVMUY)…and buy the bag with the nice dividend they pay…
Strongly agree on the micro-goal thing. Setting smaller, more attainable milestones for yourself allows you to stay disciplined in the long haul.
Just curious, how many of you are Christ's followers?
How to make passive income according to ppcian:
1. Dividends
2. There is nothing else, now go buy yourself a new Louie Vuitton bag!
My goal is to take the dividends that I am receiving and buy more shares of stocks. Pay my bills with my paycheck. One day I will be able to live with my dividends. So I can still work but I will invest my paycheck and pay my bills with my dividends.
I'm making $29 a month average in dividends. My goal is $100!
I love this video…this helped me out alot
Just came across your channel. Great content! How do you manage brokerage costs when buying a little each month?
Ian, how old were you when you started your dividend investing career?