Got $1,000? Here's How to Turn It Into a Prodigious Passive Income Stream.
Investing in companies that pay dividends can enable anyone to start collecting passive income. The average stock currently yields around 1.4% (as measured by the S&P 500's dividend yield). That implies that a $1,000 investment in the average dividend stock would produce about $14 in annual dividend income.
Many companies offer even higher dividend yields. In particular, energy master limited partnerships (MLPs) currently produce prodigious income streams, with many top ones yielding 7%-8% (suggesting they could generate $70+ in annual passive income). Here's a closer look at these passive-income vehicles and some of the best MLPs for passive income.
A master limited partnership is a publicly traded limited partnership. They provide investors with the tax advantages of limited partnerships and the liquidity of a publicly traded company.
Source Fool.com
