Generating passive income can be achieved through various means, such as risk-free assets, bonds, or income from rental properties. However, investing in dividend stocks is a simple and effective way to generate income without the need to sell an asset. Microsoft (NASDAQ: MSFT) and Air Products and Chemicals (NYSE: APD) are two companies that offer the potential for passive income through dividend payments.
Microsoft has seen significant stock price growth over the past decade, with a 0.7% dividend yield that has consistently increased over the years. The company has a low payout ratio, indicating that it has room for further dividend growth. Additionally, Microsoft rewards its shareholders through stock repurchases, further enhancing shareholder value.
Air Products, a leading provider of industrial gases, has a history of delivering consistent dividends to its shareholders. With a 2.9% forward-yielding dividend and a commitment to dividend growth, Air Products is a strong candidate for long-term passive income generation. The company’s diverse industry exposure and strong competitive advantage make it a reliable choice for income-seeking investors.
For those looking for a monthly income ETF with exposure to equities, the J.P. Morgan Equity Premium Income ETF offers a compelling option. With a 7.6% yield and a strategy that combines equities exposure with selling call options on the S&P 500 index, the ETF provides investors with a unique opportunity to generate income while participating in the stock market.
Overall, investing in dividend stocks such as Microsoft and Air Products, as well as income-generating ETFs like the J.P. Morgan Equity Premium Income ETF, can provide investors with a reliable source of passive income. With careful consideration and strategic investment decisions, investors can build a portfolio that generates income over the long term.