How to Make Passive Income with Stocks HD
Stocks have a great reputation for creating wealth from their big moves upward. Those capital gains are great, but stocks are also a great way to build another source of income and let your money make money for you. The most common form of income in the stock market is with dividends. Many established companies that have seen their growth prospects slow down will often start diverting their cash flows to dividends to keep shareholders happy—and provide a return for the money they may have tied up for years in an investment. While dividend yields may not be huge—2 or 3 percent on average—that can have a powerful impact on your portfolio’s return over time. Studies have shown that, over decades of investing, taking the dividends and reinvesting them in the market can build up your portfolio to the point where dividends account for half of your total returns. Sounds like a good deal! And with most of your money invested in solid, dividend-paying stocks, you’re less likely to blow up your portfolio trading, although you can still set aside plenty and have fun with that. But investors who just look for income from dividends are missing out. There are other ways to generate income off of stocks. One common way uses options, specifically call options. Someone who owns shares can sell call options against their position, a strategy known as covered call writing. As long as the shareholder has 100 shares for each option they sell, they’re in no danger of getting burned in the stock market… although it is possible that they may get called way on their shares. But investors who use this strategy in a bear market or after a stock has slowed down after a big rally can likely keep their shares and make an extra 5-10 percent per year, a return that’s even better than just getting a dividend. Tweet this Video: https://twitter.com/intent/tweet?url=https%3A//youtu.be/jnwtpNcnVsw&text=How%20to%20Make%20Passive%20Income%20with%20Stocks&via=YouTube&related=YouTube,YouTubeTrends,YTCreators Share this Video: https://twitter.com/intent/tweet?url=https%3A//youtu.be/jnwtpNcnVsw&text=How%20to%20Make%20Passive%20Income%20with%20Stocks&via=YouTube&related=YouTube,YouTubeTrends,YTCreators Watch More Videos: For the Best Investment Tips - How to Invest in the Stock Market https://youtu.be/vuJOcqBpckQ The Three Tips Investment Beginners Really Need to Know https://youtu.be/3rOmGRnXrRo Not sure the best way to get started? Follow these simple steps to hit the ground running... Step #1 - Get These FREE Reports: Dividend Investing Mini-Course: https://m.me/TradingTipsDotCom?ref=free3videocourse 10 Great Stocks Under $10: https://www.tradingtips.com/10-great-stocks-to-buy-under-10/ 7 High Yield Dividend Stocks: https://www.tradingtips.com/7-high-yield-stocks/ Step #2 - Join Our Premium Advisories: The Next Superstock: https://reports.tradingtips.com/miraclemetal-3/ Triple Digit Returns: https://reports.tradingtips.com/pot-mania/ Step #3 - Connect With The Commun