I’ve always preached that the fastest way to get rich is to create multiple sources of income.
While only a few could boast of getting rich with a single job or business, the majority of us would need to dip hands into many places to achieve true financial freedom.
If you’re rethinking your financial goals and looking to take it up a notch this year, then you should really be going the way of dividend income.
Dividend Income is a special type of passive income that comes from investments that continue to grow in value while yielding dividends or income for you.
In this article, we’ll look at 5 types of dividend income that we should all strive for this year 2023.
You might have your own financial plans for the year already laid out, but this list is worth taking a look at.
It’s time to stop standing on the sidelines while others make loads of money from stock dividends.
You might think the income from stock dividends is too small to make a difference, but that is you underestimating the power of compound interest.
Dividend income really adds up fast the more you invest and acquire more stocks, and it may surprise you to know that many people are living off of income from stock dividends.
If you are looking to start buying some stocks, then you should take a look at my previous article on stock trading.
Index Fund Dividends
Index Funds are one of the easiest ways for newbies to start investing in the stock market.
Most of the index funds are handpicked by expert stock market analysts, and they usually show a historic performance which investors can base their choice on.
I’ve made a list of profitable index funds that I think are worth investing in, but you can explore both local and foreign index funds that meet your investment criteria.
One of the greatest index funds in the world, the S&P 500 has performed the majority of top hedge funds and ETFs in the world and counting.
If you could invest sufficiently in such an index fund, you’ll almost be guaranteed an annual income from its dividends.
Rental Dividends are one of the safest ways to generate passive income from fixed assets.
Rental dividend or income could come from rental properties, REITs, cash lending, and rental assets.
All you have to do is make a single investment and then you can continue to enjoy dividend and income going forward.
The good news is that the entry point to set up a system that yields rental dividends is quite low.
You don’t even need to have millions before starting.
I recently wrote an article on how to set up an Airbnb rental property for less than a million naira.
That’s one of the ways you can start earning rental dividends this year.
Digital Asset Dividends
If you’re tech savvy, then you can go the way of investing in digital assets that bring dividends.
Invest with Fintech apps and fixed income crypto assets bearing returns.
These digital assets do not bring dividends per se, but they offer reasonable passive income while keeping your funds growing.
Most of the available digital assets offer daily returns, which usually adds up to your capital, and then increases your subsequent returns.
It’s wise to invest in a distributed way when investing with these digital assets so as to mitigate against the risk of losing your money.
Fixed Income Deposit
If you’re a beginner at investing and just looking for a safe way to make your money pop, then you should consider going the way of fixed income deposit.
A fixed income deposit may not offer you dividends like a company stock, but you are guaranteed a specific return at a particular time.
This is a great way to keep your capital safe and growing, while earning returns higher than that of your savings account.
But take note that most fixed income deposits are tenured, so you may need to lock in your funds in order to get reasonable returns.
Most banks in Nigeria will offer you returns of between 4% to 7% per annum depending on the amount of capital invested.
If you need higher returns, then you would have to find other investment instruments, but that will usually come with a little more risk.
This year should be the year that you get your money working harder than you do.
Refuse the mediocrity of letting the bulk of your money collect dust in your bank account while quickly depreciating.
The question you should be asking is, how smart can you get with multiplying your money?
How many ways or methods can you use your money and put it to work?
The smarter you are, the more ways you will find to get your money into channels that consistently yield derivatives.
The responsibility is on you.