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Dividend Investing: The Goldilocks Approach to Building Passive Income
By The Smart Investor  •  June 20, 2024
Imagine this: you need to take a break from work. Wouldn’t it be a relief to do so without the stress of daily expenses? Dividend investing can be your solution. Here’s why it’s the perfect recipe for building passive income:
  • Easy to Start: Unlike some investments, dividend stocks don’t require a huge initial investment.
  • Stronger Returns: By choosing the right companies, you can potentially earn more than you would with bonds.
It’s like the Goldilocks approach to investing – not too risky coupled with a return that is not too low, just right!

Starting with a small amount of capital

There are a few ways to create passive income. For instance, renting out a second property is a popular way to generate passive income in Singapore. However, you need to stump a significant amount of capital upfront and this process also often involves taking on debt. On the other hand, with dividend investing,...
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By The Smart Investor
The Smart Investor is co-founded by David Kuo, Joanna Sng, and Chin Hui Leong. The company was formed in late 2019 from the ashes of the Motley Fool Singapore. The Smart Investor believes that everybody can learn how to invest, smartly. We aim to educate people on how to invest smartly by providing investing education, stock commentary and market coverage for Singapore and around the world.
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