Please read the disclaimer at the bottom of my blog if you wish to continue with the contents below. The first thing that comes to people's mind has to be, dividend stocks. But I don't consider dividend stock investment a form of passive income. Why? Because there is a fundamental assumption that the dividend you receive from the stock you invested is something extra, which is actually not the case. A company giving their shareholder dividend, would be trading without a significant portion of its cash, which means theoretically, the company stock should depreciate at the same amount of its dividend payout. The dividend income that you receive from your stock, should theoretically be deducted from your stock capital. There is no net gain. Dividend investors treat the dividend they receive as a passive income on the assumption that the company will return to its pre ex dividend date price. ......