Buying stocks in general well, buying dividend paying stocks is a good way to build some passive income. I do use robinhood for buying stocks and I do like the app even if there maybe be better apps out there. Robinhood does want to want it to do, I buy shares of a company without paying any fees and it works so if you to join robinhood you canclick hereto join. But is it a good way to have some passive income coming in? there answer is yes but it should not be the only thing that you build for passive income. It should be one of the assets you work on out of many so in the post I will talk about stocks, and building other assets besides stocks. I am not a stock expert or an expert on the things that I talked in this post. I am just sharing what I do, how I do it and why and this post may contain some affiliate links so if you do click on a link and buy, I will get a commission for that which it help the blog keep running.
Stocks from robinhood:
Again I am still learning what I can about stocks so I am not expert but I started buying stocks for one reason only. That reason is that dividend paying stocks can be another stream income. Once you buy the stock, if you hold the stock and don’t sell it, you will receive a dividend payment. The payment will come on the company set schedule. Some pay months, quarterly, and once per year. When I started building other streams of income I came across stocks. Right now well writing this post I have $1,300 dollars into 30 different stocks. Now I am not going to tell how to buy stocks, I will write a blog post about that part but I will go over the pros and cons of stocks that I see so far from someone who is not an expert at stocks.
The good side of stocks:
A stock is an asset. It makes you money without you doing anything and I am taking dividend paying stocks only. It’s very small money but if you keep buying stocks, the grows over money.You own the stock forever, as long as that company stays in business and pays a dividend, you will keep getting money for years to come. It’s super passive: after you do your research on the company that you want to buy, you buy the stock and that’s it. There nothing really to do after that but stay up to date with the company and news so it’s very passive.Anyone can do this: anyone can buy stocks, some stocks prices are $5 dollars are below that pay a dividend. You can’t cheat the system meaning you will only get the dividend if only you have the stock, no stock, no money easy. Robinhood makes it easy to buy stocks and won’t cost you a thing.
It can do it part time: I see all these YouTubers put down $2000 dollars on stocks per month and to be honest, some people don’t have that kind of money to put down on stocks per month including me. So you can just put down $50 dollars and less or more. It’s part time cause you when get paid, you can takeout $100 dollars and buy some stocks if you can spare it. If you buy stocks every time you get paid, over time you will build up a lot of stocks and passive income without braking the bank. If you can only invest $30 dollars then invest $30 dollars, it’s up to you. I also like the fact that I don’t have to invest a lot of time, I don’t have to work for the stocks, once I buy the stocks, I can move on to something else.
Robinhood was I believe the stock app that allow you to buy stocks with zero fees. In the past other brokers charged a fee for each stock you bought and sold stocks. Robinhood change the game and now mostly all stock broker charge zero fees now. Robinhood works for me and other stock broker apps maybe be better than robinhood but it does what I need it to do, you pick your own stocks, the app is getting better with other updates they are adding. If you would to join robinhood you can click hereto join.
The bad side of stocks: you have to pay taxes on the dividends that you get. You must pay taxes on stock that you sell. Any company can decided to stop paying a dividend, they can do so if they want to. Dividends are small payment, like .9 cents per stock so you would have to buy a lot of shares to make some money. for example apple hospitality reit stock, right now at the time of writing this post the stock price is $15.35 cents per share and it’s a monthly dividend payment. Own 1 share, you will get a dividend payment of .10 cents per share. So in order to make 1 whole dollar per month you have to buy 10 shares of this business. 10 shares of this business will cost you right now $153.60 in order to make one whole dollar per month. That’s a lot of money and getting some much little in return. Some stocks pay quarterly which is every 3 months which is a long time to wait to get some money and if you don’t have a lot of stocks, the payout would not be waiting for. right now I owe 3 shares of Ford motor company. It’s pays a dividend of .15 cents per share so in 3 whole 3 months I will get getting .45 cents. so you would have to but a lot of stock to get a decent return.
So bottom line robinhood is a great app to use for building passive income with dividend paying stocks. There are pros and cons to buying stocks but its total up to you if you want to buy stocks. I believe in buying stocks part time to start. It does take a lot of money to get a decent return but if you start now over the next few years the dividend payments may increase, you will have way more stocks and you have assets. If you would like to join robinood which the app I use you can click here
