Comments on: Dividend Investing for Passive Income and Portfolio Growth

By: David Bressler

David Bressler — Mon, 28 Sep 2009 20:44:55 +0000

Hi,

Huge fan of dividend/drip investing, but one quick comment on your use of the term “passive income”.

Dividends are not considered passive income by the IRS, and therefore cannot be used to offset passive losses (like the depreciation of a rental property). So, if you are a landlord, and “show” a loss due to depreciation of the property, you still must pay estimated taxes all year long on your dividends (or if a small amount, pay those taxes at the end of the year).

That said, not only is dividend/DRiP investing a great way to invest – EVEN WITH SMALL AMOUNTS (it’s about the %, not the net) – it’s also fun.

Enjoy

David
David Bressler´s last blog ..The Details ARE the Product

By: Blog Your Way to Passive Income Streams | Zero Friction Marketing Review

Blog Your Way to Passive Income Streams | Zero Friction Marketing Review — Mon, 27 Jul 2009 11:46:01 +0000

[...] Dividend Investing for Passive Income Streams … [...]

By: 5 Ways to Improve Your Personal Finances | CreditLendingBlog.com

5 Ways to Improve Your Personal Finances | CreditLendingBlog.com — Fri, 17 Jul 2009 21:31:03 +0000

[...] Diversify Your Income – now, this is the best solution to your problem. But this requires a lot of planning, effort, and strategizing on your part. Some ways to get multiple income streams include starting a small business, offering your services online and offline, selling some unused stuff, or going into dividend investments. [...]

By: CreditLendingBlog

CreditLendingBlog — Fri, 17 Jul 2009 21:18:11 +0000

8 percent over the course of 20 years doesn’t sound that attractive but I guess it’s better than nothing. It’s just not surprising that a lot of people had been had by Madoff.
CreditLendingBlog´s last blog ..CIT Failure Will Have Far-Reaching Impact

By: Will These Companies Actually Increase Dividends? - Money & Investing - Banks.com

Wed, 08 Jul 2009 21:03:08 +0000

[...] companies are interested in increasing their capital, less of their profits are being used to pay dividends to shareholders. However, not all companies are cutting their dividends. More than 200 raised their [...]

By: Mack jackson

Mack jackson — Wed, 01 Jul 2009 07:00:09 +0000

Ya i agree that any type of investment involves risk, so be careful while investing in any type of stocks, proper knowledge and planning is very much essential for sure.

By: MoneyEnergy

MoneyEnergy — Tue, 30 Jun 2009 20:28:14 +0000

Love it – you know this is my favourite topic:) I have about 17 or so DRIPs on the go, in addition to my regular brokerage portfolios. And even in my ETF selections, I only go for ones that pay me:) The way I explain it now is that I don’t subscribe to the school of “buy and hope.” If I hold a pure-growth play, I’m basically just hoping it will increase faster than inflation over time. Aside from, say, owning gold, I think I’m turning away from all stocks and funds that never pay you back until you cash out.
MoneyEnergy´s last blog ..What I Learned About the Economy From Watching Food, Inc. (dir. Robert Kenner, 2009)

By: Miranda

Miranda — Tue, 30 Jun 2009 14:40:54 +0000

LOL. It depends on the stock, and how well it does. Annualized returns for the stock market are traditionally right around 8% over a period of 20-25 years. You really can’t figure out to any sort of accuracy any individual stock, especially in the short term. But if you get 8% annual return, after one year you would have earned $80 + whatever dividends the stock pays. You can use online calculators to extend that out.
Miranda´s last blog ..What to do When Your Minimum is Raised

By: Matt Jabs

Matt Jabs — Fri, 26 Jun 2009 13:54:31 +0000

This is a good idea for people who have a lot of money to invest. I will be there in a few years my friend!

Question… what is the rate of income versus amount invested? For example, what is a typical rate of return if I invest say… $1,000 in a company stock?
Matt Jabs´s last blog ..Identify & Overcome Money Anxiety & Stress in Relationships

By: Miranda

Miranda — Fri, 26 Jun 2009 13:24:33 +0000

Thank you for sharing another possibility for passive income. In truth, there are many opportunities to get passive income streams — or at least recurring streams that automatically renew.
Miranda´s last blog ..Don’t Expect Banks to Increase Dividends