Part 4/11:
Dividend stocks offer a way for investors to earn income by owning shares in companies that share a portion of their profits with shareholders. While some companies provide more reliable dividends than others, established names such as Target and Procter & Gamble have a long-standing history of consistent payouts.
Investors can use platforms like M1 Finance to buy shares for free or opt for pre-built portfolios, making it easy to start earning passive income through dividends.
Bonds: A Favorable Alternative
Another avenue to income is through bonds. Unlike stocks, which represent ownership, bonds function as loans to a corporation or government, which repay investors with interest. Bonds are often favored for their reliability and lower volatility compared to stocks.