Is Loading Up on Passive Income Stocks Right Now a Good Idea?
Many investors dream of building a portfolio that delivers significant passive income. If you invest your funds carefully, that dream is always within reach, and now's a very tempting time to make progress toward it.
With a bear market in full swing, there are undoubtedly more buying opportunities as stocks look seemingly cheaper than they were a few months ago. But not every dividend stock will make for a solid passive cash-flow source a decade from now. Let's delve into a few arguments in favor of loading up on passive income stocks right now and a few in favor of holding off. That way you'll get a feel for where to allocate your money that'll deliver optimum, risk-adjusted returns.
One big argument in favor of buying passive income stocks right now is investors will be able to lock in more income for each invested dollar than before. As share prices fall, dividend yields rise. It's simple math: Unless the per-share value of the dividend is cut, falling stock prices mean a higher payout in proportion to the share price.
Source Fool.com
