Perhaps the greatest luxury of all is an investment that throws off cash because it provides a constant stream of earnings that can be used to buy the goods and services you desire without having to punch a time clock.
After all, a portfolio of $10,000,000 in bonds and dividend stocks could generate between $400,000 and $800,000 in annual income without touching your principal. That level of earning power would put you squarely in the capitalist class and can support even the healthiest Amouage Jubilation XXV habit, as you count your money from your new Clive Christian study or home office.
How Can Ordinary, New Investors Invest for Dividends Without a Lot of Money?
Most people, however, don't have that kind of money (or anywhere near it). So how can dividend investors take advantage of cost savings and achieve diversification without breaking the bank in brokerage commissions? Thanks to the iShares family of products, it is now possible. Mr. Monopoly and other dividend lovers can rejoice because iShares has created two major low-cost exchange traded funds (ETFs), or dividend ETFs, designed to let investors buy a block of dividend paying common stocks by purchasing a single security that trades just like a share of regular stock through their stock broker. That means instant diversification with only one brokerage commission, making passive income easier to achieve for those on a smaller budget. Read more ...