in our free newsletter.

Thousands benefit from our email every week.

Dividend stocks

Investing in stocks is a rather passive way to make money. You fund your account, buy a stock and (if you picked the right one) the stock gains value over time without the need for you to lift a finger. To make this even more attractive, some stocks offer you cash payments simply for holding them.

Blue-chip stocks often pay high dividend yields. For example, AT&T currently offers to pay out 7% of its share price, and Pfizer offers 5% along with its Dividend Reinvestment Plan, which lets you compound wealth at an accelerated pace.

With enough time and capital, you could create a sustainable source of passive income from dividends alone. High-yield dividend stocks can allow you to fund your lifestyle with the rewards of a thriving economy, and the strategy requires no physical labor at all.

Meet Your Retirement Goals Effortlessly

The road to retirement may seem long, but with WiserAdvisor, you can find a trusted partner to guide you every step of the way

WiserAdvisor matches you with vetted financial advisors that offer personalized advice to help you to make the right choices, invest wisely, and secure the retirement you've always dreamed of. Start planning early, and get your retirement mapped out today.

Get Started

Inflation-protected bond ETFs

Bonds are looking more attractive now that the central bank has raised interest rates. The yield on a 10-year U.S. Treasury is comfortably above 4% right now, significantly higher than the sub-1% yield in 2020. The Treasury yield is also much higher than the S&P 500’s average dividend yield of around 1.6%.

Simply put, you can earn a higher income by lending money to the U.S. government for 10 years (a strategy widely considered to be nearly risk-free) than by investing in America’s 500 largest public companies.

Inflation complicates this a little. That’s because companies in the S&P 500 can raise prices and boost dividends in line with inflation, but the payout on most government bonds is static regardless of economic conditions. With inflation at 3.7% right now, this is a genuine concern.

However, some bonds have payouts linked to inflation. Treasury Inflation-Protected Securities are U.S. sovereign bonds pegged to the Consumer Price Index. In other words, the payout on these bonds is periodically adjusted according to the cost of living.

Funds like the iShares TIPS Bond ETF (exchange-traded fund) could give you access to this stream of passive income.

Follow These Steps if you Want to Retire Early

Secure your financial future with a tailored plan to maximize investments, navigate taxes, and retire comfortably.

Zoe Financial is an online platform that can match you with a network of vetted fiduciary advisors who are evaluated based on their credentials, education, experience, and pricing. The best part? - there is no fee to find an advisor.

About the Author

Vishesh Raisinghani

Vishesh Raisinghani

Freelance Writer

Vishesh Raisinghani is a freelance contributor at MoneyWise. He has been writing about financial markets and economics since 2014 - having covered family offices, private equity, real estate, cryptocurrencies, and tech stocks over that period. His work has appeared in Seeking Alpha, Motley Fool Canada, Motley Fool UK, Mergers & Acquisitions, National Post, Financial Post, and Yahoo Canada.

What to Read Next


The content provided on Moneywise is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter.