If you don’t have the savings to buy a blog or a business just yet, dividend stocks are a far more accessible route to passive income. Just pick a winner, invest your money and wait for those quarterly checks to roll in.
The trick is picking a winner.
The Dividend Aristocrats index is a good place to start. It’s a collection of 65 S&P 500 stocks — for now, companies are often added or removed — that have increased their dividend payments every year for 25 years without interruption.
McDonald’s is a Dividend Aristocrat. If you had $240,000 to buy 952 shares, according to Motley Fool, you would generate $5,000 a year in passive income at a minimum — or you could buy one share for $250 or part of a share with whatever you have. If you ever decide to eat your golden goose, you could always sell your shares for a windfall. For more diversification, buy the entire index through the NOBL ETF.