Passive Income: A Five-Step Guide

Passive income, usually in the form of dividend payments from common stocks, is one of the main reasons why people come and visit my site. Sometimes, though, there can be a tension between the search for passive income and value investing. The sustained and expected dividend cuts among oil stocks is the latest example of how searching for passive income and making attractive investments can sometimes come into conflict.

A question that frequently comes up, then, is: How do you build a portion of your portfolio that produces passive income which is highly reliable and gives you a regular source of passive income that can be deployed to make new investments or meet living expenses?

To answer that question, I have prepared a five-step guide that ought to put you in the position to find excellent candidates in the stock market that generate passive income.

Step 1. Only consider companies Read the rest of this article!