How many income producing assets do you have? Your house, car, clothes, paintings, motorcycle, and boat are not income producing assets. In fact most of those assets cost money to maintain and operate. If your pay check is your only source of income you might be in trouble. What would happen if you lost your job? How long could you survive without a pay check? If you are not happy with those answers then you need to start acquiring income producing assets. Quality dividend paying stocks are excellent at producing income, and when compared to owning a business or rental property, dividend stocks do not:
Once purchased dividend paying stocks require very little effort on your part. As long as you own those shares, the companies will continue to pay you cash (dividends) each year, each quarter, or every month. By owning dividend paying stocks across various industries you reduce your risk, and ensure multiple streams of income. Your pay check equals a single stream of income, that isn’t under your control. Your employer can at any time decide to cut costs and reduce the number of employees. However a portfolio of 20 stocks provides you with 20 unique streams of income. Thinking of buy that brand new LCD television, or brand you SUV? Over time these assets will be worth less and less, and will cost you money to operate. Instead invest that money in quality dividend paying stocks which provide you with income and over time also rise in value. Invest now for a richer future tomorrow.
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Photo courtesy of Consumer Reports.