Friday, November 19, 2010

Dividends - Tried and Tested Source of Passive Income

I have been holding some dividends stocks for quite some time already.

They provide a good rate of return of around 5% yield. That is for each dollar invested, I get roughly 5 cents back in dividends each year. Not too bad for a steady stream of income which I do not have to work hard at.

As the dividend paying period tends to coincide during the year, I tend to get like huge half-yearly payouts that amounts to over $1000. It is always a pleasant surprise to see the money credited into my bank account.