Want $1,000 in Passive Income? Invest $4,626 in These 3 Stocks and Wait 5 Years
Building an income portfolio is a function of a couple of things. First, look at your financial goal and then work backward. In this case, let's say an investor wants to generate $1,000 in passive income from three stocks in five years. The next step is to find three good stocks and then calculate how many shares to buy to generate that income. Theoretically it would take a smaller investment if we used a dividend reinvestment plan, but that complicates the math.
The three stocks are Realty Income (NYSE: O), STORE Capital (NYSE: STOR) and Duke Energy (NYSE: DUK). I'll work through the math when discussing each one. Note that I am also choosing conservative names, which would be appropriate for an income investor.
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Source Fool.com
