Invest like the rich

From an article "5 Passive Income Streams Loved by the Super Rich":

“By investing in a portfolio of dividend-yielding stocks, investors receive regular payouts without selling their shares,” said Dominic James Murray, CEO and IFA at Cameron James. “This method offers a balance between income generation and capital appreciation.

Dividend stocks may not be as lucrative or exciting as private equity, but they are accessible and generally a low-risk investment offering superior tax treatment. Wealthy investors build highly diversified portfolios across sectors and geographies to maximize yields while mitigating volatility risk.

They focus on stocks that consistently raise dividends over decades and thrive despite challenging economic environments.

I love the part where it says "it may not be as exciting as private equity"... we're not investing for the excitement, just the fun! And another paycheck, with regular raises... that's fun.

But the main reason I wanted to highlight dividend stocks as a standard weapon of choice for passive income is that I see a lot of mistaken thinking on Reddit, where people feel like you're giving up growth when you invest in dividend stocks. That dividend stocks are for old people who don't want risk.

Neither of that is true. Dividend stocks are a fundamental building block of passive income investing, no matter your age. That of course doesn't mean to go all in on dividend stocks – but my opinion is that if you have a 401(k) with your company, that's a good place to invest in broader market funds (because individual stock investing is not allowed in those plans). So you're essentially diversifying between your 401(k) and other investments.

And, the kicker in the article is the call out to the Dividend Aristocrats who consistently raise their dividends over decades.