Home Business News A stock to create bullet-proof monthly passive income with just $5,000

A stock to create bullet-proof monthly passive income with just $5,000

10th May 24 10:23 am

A recent study conducted by the US Census Bureau found that 20% of American households earn passive income from dividends, interest, or rental properties. Some of these methods require a significant sum for passive income, let alone a monthly income.

Saqib Iqbal, a financial analyst at Trading.biz, tells how he is building a monthly passive income with only $5,000.

  • Building a monthly passive income through REITs like Realty Income (NYSE:O) can prove lucrative in the long run.
  • Realty Income offers a consistent monthly dividend with a 54-year payment history.
  • Investing in Realty Income could double your returns in 10 years.

He says, “One of my favourite ways to earn a monthly income is through REITs, and no REIT is better than Realty Income (NYSE:O). On top of the high yield, O is a dividend aristocrat with a 54-year monthly dividend payment history. Also, the company has been increasing dividends for the past 30 years, and with a monthly dividend of $0.2570, you don’t need a lot to get started.

Founded in 1969 by William and Joan Clark, Realty Income (NYSE:O) provides investors with reliable monthly income. The company’s portfolio includes over 12,400 free-standing commercial properties leased to over 1,250 retailers and industrial companies from 84 industries.

If you do the math, the current share price is $55.45, and investing $5000 will bag you around 90 shares. With a current dividend of $0.2570, (NYSE:O) can bring you $23.13.

Saqib says if you have a long-term horizon, you should hold the stock for 10 or 20 years. With dividends reinvested in 10 years, your initial investment could grow to $8235.

However, with Realty’s strong 30-year dividend increase record, your initial $5000 could double the return in 10 years. That’s a recurring revenue of about $84 per month.

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