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Passive income each year can come from a variety of methods. There’s of course the traditional method of using guaranteed income certificates (GIC). This is fixed income over usually a long period, and can bring in some serious income right now with higher interest rates. There’s also bonds, both from banks and corporations. Again, you can get fixed income from these sources as well.
Then there are dividend stocks. But here’s the issue with dividend stocks. That dividend can be cut at any time. And if it’s cut, suddenly the income you bet on isn’t there any more. Especially if you’re investing in a dividend stock for the dividend alone.
What to consider instead
So instead of just looking at a high dividend yield, which can be fairly easy to find, you need to dig deeper. Investors should seek out passive income stocks that offer passive income not just from dividends, but…
