00:00hey everyone today we are going to do
00:02something that you will really love
00:04we are going to have another long video
00:06that is going to be full of value
00:09passive income is the best invention of
00:11life what could be better than making
00:14while you're sleeping traveling and
00:16enjoying quality time with your family
00:18that's why we have so many videos on how
00:21to build passive income
00:22but for this video we have chosen our
00:25best passive income videos
00:27and turned them into one single video
00:30if you want to build passive income then
00:32you absolutely must watch this video
00:34there is going to be a table of contents
00:37so you can skip to the parts that you
00:39want to learn or come back and rewatch
00:42it is going to be a really long video so
00:45grab a drink and some snacks
00:47and most importantly give this video a
00:55around 4 000 years ago in a kingdom in
01:00there was a guy named arcade who was
01:02poor like he could barely put
01:04food on the table to escape poverty he
01:08however when he received the payment for
01:11he lived very frugally and lent most of
01:13his income to a shield maker
01:15who then paid interest on the loan
01:17instead of spending that interest to
01:18move to a bigger place
01:20he kept living frugally and lend that
01:22interest to another shield maker
01:24thus growing his wealth even more after
01:27repeating this process for years
01:29his wealth grew so big that he did not
01:33since his money was working for him so
01:36he ended up as the richest man
01:37in babylon of course you can't lend
01:40money to a shield maker
01:41because that shield maker probably has a
01:45or would rather go to a bank than look
01:47for you but that story
01:48illustrates the power of passive income
01:51nothing is more powerful
01:53than when your money makes more money it
01:56effort and provides you with financial
01:58support to pay all of your bills
02:01but very few people achieve that
02:02milestone where their money works for
02:05and not the other way around chasing
02:07money is not a bad idea
02:09but chasing money your entire life isn't
02:11also a great idea either
02:13because you need time for other things
02:16that's why i try my best to create as
02:19many sources of income as possible
02:21but most importantly make them as
02:24efficient as possible
02:25the most famous passive income source is
02:27rental income you have a property that's
02:30and then the tenant keeps sending you a
02:34since real estate is not cheap that
02:36check could be big enough to pay all of
02:39but what if you don't have the money to
02:43of course you don't need hundreds of
02:45thousands of dollars to buy a property
02:47all that you need is enough for the down
02:49payments the rest will be covered by
02:52even if the property doesn't generate
02:54income in the first year or so
02:56it will in the future once rent prices
02:58rise year after year
03:00but real estate isn't the only place
03:02where you can build passive income
03:04in the 21st century there are far more
03:07tools than most people know
03:08so in this video i want to share with
03:10you some real passive income ideas
03:13that you can implement right now and
03:16you don't need a lot of money to start
03:19at number one we have
03:20vending machines when we talk about
03:23we never mention vending machines
03:25because they don't sound as exciting as
03:28real estate for example
03:29but if you think about it it's that kind
03:32of an asset that provides a constant
03:35and requires minimum effort if you
03:38there were 5 million vending machines in
03:42these 5 million vending machines produce
03:44an average of 20 billion dollars in
03:48but most vending machines earn around
03:51because it's not an easy business like
03:55if your property is placed in a bad
03:57neighborhood it will probably turn into
04:01but a well-placed vending machine can
04:04more than that potentially exceeding a
04:06hundred dollars per week
04:08or even hundreds of dollars per day the
04:11challenge is to pick the right place
04:13and sell the right products if you place
04:15it somewhere where there aren't many
04:17it's going to be one of those machines
04:19that earn five dollars a week
04:21but if it's in the highly visible
04:23location where it will regularly attract
04:26buyers that's when you can expect a few
04:28hundred dollars from it every week
04:30it requires a lot of work in the
04:32beginning but minimum management later
04:35isn't that the meaning of passive income
04:37before getting into the space
04:39i highly recommend everyone to study it
04:42because you have to understand what kind
04:44of product sells the best
04:45what vending machines turn the highest
04:47profit and what type of locations
04:52at number two we have print on demand
04:5510 years ago this business was
04:57impossible it just became mainstream
05:00so it still has a lot of room to grow
05:02you know some businesses are so
05:04old that it's nearly impossible to get
05:07because they're so crowded but that's
05:10print on demand businesses the global
05:12market for custom t-shirt printing
05:14industry is expected to cross
05:1610 billion dollars by 2025. t-shirts are
05:20cheap to source have universal appeal
05:22and a relatively cheap to customize but
05:25it's competitive fuel since
05:26there aren't many barriers to entry if
05:29you want to compete with tesla for
05:31you need tens of billions of dollars to
05:35but if you want to start selling
05:38you need nothing except a good idea
05:40because there are multiple platforms
05:42that can take care of everything
05:43starting from delivery to management
05:46your job is to design
05:47and sell whenever i see someone wearing
05:50a t-shirt with something cool
05:52written on it i want one as well so if
05:54you have a good taste
05:56you can spend some time designing cool
05:58t-shirts on teespring
05:59printful or any other platform and run
06:03if people find your designs desirable it
06:06will turn into passive income where you
06:07can keep selling your t-shirts
06:09with minimum average you can come up
06:11with new design every three to four
06:14to sell another t-shirt to your existing
06:18number three rates or real estate
06:22rates are popular among investors who
06:24want to invest in real estate
06:25but don't want to deal with management
06:27of course renting a property is great
06:30but it requires some management so there
06:32are firms such as american tower or
06:35brandywine reality trust that invest in
06:37office buildings for example
06:39in philadelphia washington dc or austin
06:43raids are traded in the stock market
06:44like any other company
06:46but usually they offer a much higher
06:49for example primary one reality trust
06:53a 5.5 percent dividend rate that is
06:56incredibly high but you have to
06:58understand that their stock price
07:00doesn't increase much most of the money
07:02you're going to make
07:03out of this company is from dividends
07:05there are a lot of different rates
07:07some of them invest in commercial
07:08properties others in residential areas
07:11some just online across the country and
07:14the high dividend yield is what makes
07:16them so good as a passive income
07:19but be careful with them because if you
07:21invest in the wrong rate
07:23you might lose your investment at the
07:24cost of high dividends
07:26so pay attention to how the trust has
07:29over the last few years at least number
07:32rent a room on airbnb if you have an
07:35extra room in your house that you do not
07:38writing it on airbnb is the way to go
07:40with airbnb you will most likely rent it
07:44than renting it on a long term basis of
07:46course airbnb means a lot of management
07:49because you need to clean the room make
07:50sure it has all the necessities before
07:52every guest comes in
07:54but nevertheless it's a great source of
07:56income and since your guest is going to
07:58stay in the next room
07:59your guests won't ruin your room some
08:01people even take a mortgage and let
08:03airbnb tenants pay off their mortgage
08:06it's a great way to build wealth over
08:07time of course with covet it has become
08:10much more difficult but i have no doubt
08:12that things will get back to normal
08:14we humans are social creatures we can't
08:18we want to travel we want to see new
08:20places we want to move around
08:22we've been doing this since the
08:24beginning of human existence
08:26and finally the last idea is invest in a
08:28small business as a silent partner
08:31when we talk about starting a business
08:33we usually mean starting a huge business
08:35but there are plenty of small businesses
08:37that could be very profitable such as
08:39a corner shop or a barber shop of course
08:42running a corner shop is a full-time job
08:44but it could be turned into passive
08:46income if you join the business as a
08:50in business there is a concept called
08:53where you don't deal with the day-to-day
08:55management of the business
08:56but rather play more of an advisory role
08:59these type of businesses do not need a
09:02and their business model is pretty
09:03simple you don't have to be a genius to
09:06find out how to start
09:07a profitable corner shop just take a
09:09look at what others have done
09:11you might go 50 50 with someone else who
09:13is going to run the business
09:15on day to day basis and will get a fixed
09:18but you're going to have a constant
09:20stream of income but it's important that
09:22your numbers work out on paper at least
09:24before starting anything in this field
09:27because it's an investment eventually
09:29i did not include traditional passive
09:31income sources because
09:32we've talked about them in previous
09:34videos but if you think about it
09:36there are far more options than most
09:38people think about at first
09:39out now it's your turn to let me know
09:42what's your favorite passive income
09:44let me know in the comments below
09:47how many crypto millionaires are there
09:49in the world just take a guess
09:51one thousand five thousand ten thousand
09:54in fact you can stop the video and write
09:57down your guess in the comment section
09:59let's see if you can guess it right
10:01according to the cryptocurrency data
10:04bit in for charts there are over a
10:06hundred thousand people who have at
10:08a million dollars or more stashed in
10:11that figure was up from just 25 000
10:14bitcoin millionaires
10:15four months ago and a year ago there
10:1915 000 bitcoin millionaires imagine if
10:23all other millionaires who hold
10:25different kind of cryptos such as
10:27ethereum dodge coin bitcoin cash stella
10:31i think there are a few hundred thousand
10:33of them but you know what i like more
10:36passive income when you put the work up
10:39enjoy the cash flow that comes in
10:42of course it might need a little
10:43management but overall with minimum
10:47you can keep receiving that paycheck
10:49every month or every week
10:51it might seem like you need a lot of
10:52money to build at least one or two
10:54sources of passive income
10:56but not today i mean people are creating
11:00nowhere like in the case of cryptos what
11:02makes you think that you can't build at
11:04one if you have an internet connection
11:07so let me share with you
11:08five passive income ideas that you can
11:12right now right after watching this
11:14video it doesn't matter if you have a
11:17or if you don't have a lot of money
11:19these passive income ideas can be
11:22literally by anyone so if you're ready
11:25all you have to do is give this video a
11:28crush the like button and let's start
11:32license your pictures in the age of the
11:34internet you can monetize
11:36pretty much anything even your pictures
11:39you probably have heard this a million
11:41but i'm going to give you a practical
11:43way to turn your pictures
11:45into passive income this is not a scam
11:47although it sounds like one
11:49you see content creators have to come up
11:52and not everyone is ready to go and
11:54shoot videos or create illustrations
11:56such as this one so our team for example
11:59relies on external sources
12:01to get these illustrations others use
12:03video footages or pictures to create
12:06business casual economics explain or
12:10second channel bloom and we use tools
12:13shutterstock for example to get these
12:15images all you have to do is
12:17upload your pictures or videos to these
12:19websites and whenever someone would use
12:22you're going to get paid a small
12:25in fact you can start uploading the
12:27exact same pictures you have on your
12:30it doesn't matter if they are pictures
12:31of your own or nature
12:33as long as they look decent you can give
12:36you're going to create passive income
12:40but what if you're not a fan of pictures
12:42what if you don't take pictures all the
12:45or you're just bad at taking pictures
12:48well don't worry because you can
12:52sounds too good to be true before you
12:54jump into conclusions
12:55let me explain you're probably
12:57interested in something it could be
13:00stock market college art doesn't matter
13:03there is at least one thing you're
13:07what if i told you that instead of just
13:09sharing your ideas or opinions
13:11or knowledge with your friends over a
13:13drink on friday night
13:14you could share them with the world and
13:16monetize them that's what blogging is
13:18you don't necessarily have to make
13:20videos i get it it takes
13:22time money and effort but writing down
13:25is easy just set up a website and turn
13:29into articles such as this one and put
13:31some ads on your website through google
13:34every time someone opens your article
13:36they would come across an ad
13:38and you're going to get paid a small
13:40commission for every ad
13:42that appears on your blog which could
13:44turn into thousands of dollars
13:46if enough people would read your blog
13:48another way to monetize your blog
13:50is through affiliate marketing if your
13:53fitness for example because you're
13:55trying to lose weight
13:56and build some muscles in your blog you
13:59might recommend some protein shakes or
14:01abs that would help you to track your
14:03calories for example
14:04or help you exercise more effectively
14:08every service has an affiliate program
14:11you can get paid anything from one
14:13percent to 10 or even
14:1520 if someone uses your link to buy that
14:19if someone would read your blog and
14:21would get value out of it
14:22they would definitely use your link to
14:26since you have established trust with
14:28them every time i talk about books for
14:31i make sure that i put affiliate links
14:33down in the description
14:35so those of you who are interested in
14:37buying that book you can do that using
14:40and we will get a small commission that
14:42will help us to grow the channel
14:44you're not going to overpay that company
14:47amazon would share with us a tiny
14:50percentage of the sale
14:51for driving the traffic to the store of
14:54with one or two links you aren't going
14:57but imagine if you have dozens of
15:00dozens of links you might drive hundreds
15:04thousands of people and that small
15:06commissions will turn into a decent
15:09over a month number four put some ads on
15:13it sounds like a joke but there is
15:15actually a way to make money by putting
15:18it's so weird that there are so many
15:20ways you can make money today through
15:22what an age are we living in think about
15:25it you drive your car anyway
15:27you might drive every morning to your
15:29office drop your kids at school
15:31or just hit the hypermarket to do your
15:34why not let your car generate some
15:36income while you're doing that
15:38i know that putting ads on your card
15:42you might feel a bit uncomfortable but
15:44who cares you are earning money
15:46and in case if you get tired of that you
15:48can get rid of it whenever you want
15:50you can expect to earn anything from 100
15:53to five hundred dollars per month
15:55especially if you have a car loan it is
15:57going to pay for your car
15:59but be careful because there are a lot
16:00of scummers in this industry
16:02it's going to take you some time to find
16:04a proper company that's willing to put
16:07but then you can forget about it while
16:09you will get a few hundred dollars
16:11every single month for just driving your
16:14and finally government bonus this is
16:17probably the easiest and the safest
16:19source of passive income
16:20it doesn't requires any skills or even
16:22effort you're basically going to loan
16:25your money to the government
16:26and in return the government is going to
16:28pay you interest for that
16:30the government is going to take your
16:31money and spend it on the infrastructure
16:33or schools and so on to improve the
16:36productivity of the citizens
16:38and in return their income would rise
16:40and they will pay more taxes which the
16:42government is going to use to pay you
16:44but you don't have to wait for the
16:46government to pay you back you can
16:48simply sell it in the secondary market
16:50government bonds vary from 3 months to
16:53the longer the period is the higher the
16:5710 year old bonds which are the most
16:58popular ones have a yield of 1.61
17:02now which is not that high but you have
17:06interest rates are extremely low right
17:08now so do government bones
17:10when the fed is going to raise the rates
17:12bond rates will rise as well
17:14it might not be the best option now but
17:16it will be in the coming future
17:18because sooner or later interest rates
17:22at least it's much better option than
17:24keeping your money in a bank
17:25that doesn't pay even a one percent
17:27interest but on the other hand
17:29it's a safe investment what are the
17:32chances that the us government will go
17:35pretty low if not zero since the us
17:37government is the source of dollar
17:39so if you want a safe passive income
17:42that doesn't require
17:43any effort then government bonds are
17:47there are hundreds if not thousands of
17:49ways to create passive income
17:50especially in the age of internet you
17:53might not be able to implement
17:54all of them but you can at least try one
18:00you think of the stock market the first
18:02thing that comes into mind is this
18:03complicated world of the stock market
18:06with so many confusing charts it's easy
18:10but what everyone knows for sure is that
18:15and sell them whenever they rise but
18:17there is another way that professional
18:20used to make a fortune in 2018
18:24warren buffett received 3.8 billion
18:28dollars in cash from his five major
18:32don't get me wrong he didn't sell his
18:33shares to earn that much
18:35but instead these five companies earned
18:39a ton of money during the year
18:41and since warren buffett is an investor
18:45they had to share with him their profits
18:48that's called dividends simply put it
18:51there are two types of companies in the
18:55companies that have already matured and
18:57have profitable and sustainable business
19:00so whenever they make a profit they
19:03don't know what to do with that money
19:05therefore they end up sending it to
19:09on the other side you have companies who
19:12are still trying to turn a profit
19:14like tesla they might report a profit
19:17but the company needs that money to grow
19:20so here is a question we will try to
19:22answer in this video
19:24how many stocks you have to buy or how
19:26much you have to invest in the stock
19:29so that you receive a thousand dollars
19:31from your investment
19:33every single month without selling your
19:36but before we do that we have to
19:39understand a few key concepts
19:42how dividends work what are the best
19:45and how to avoid the dividend drop that
19:48might lead you to lose
19:49your entire investment
19:54since the dot-com bubble the nature of
19:56investing has changed
19:58before that investors main concern was
20:01to invest in companies
20:02that would turn a profit and share these
20:06since as shareholders they are entitled
20:09to the company's profits
20:11but entrepreneurs such as jeff bezos
20:14and completely changed the game the goal
20:17was no longer to maximize profits
20:20but rather grow the company even if that
20:23not paying a dime in dividends to
20:27a company that only burns cash and isn't
20:30looks like a bad business but the
20:34to keep operating at a loss until you
20:36dominate the entire industry
20:38and then generate profits since you will
20:41be the only player in the market
20:43and that's what amazon did for the last
20:47despite its 1.6 trillion dollar
20:51it never paid a dime in dividends to its
20:55in fact it avoided taxes for two decades
20:58it was reporting a loss in 2019
21:01it turned 11.5 billion dollars in net
21:06while its competitor walmart generated
21:0815.2 billion dollars
21:10and paid 2.16 dollars in dividends per
21:15but at the end of the day walmart was
21:18at 1 3 of an amazon amazon might seem
21:22like a more promising stock in the
21:25but if you want passive income walmart
21:27looks like a better option
21:29and the stock market is filled with such
21:31examples they're just a handful of tech
21:34companies that pay dividends
21:36the rest especially the big ones would
21:39what they have earned instead of paying
21:45while stocks that pay high dividends are
21:49they aren't always the best option in
21:53dividends sometimes are used to mislead
21:56and rip them off the stock might be on
21:58the verge of bankruptcy or it might be
22:01barely surviving its stock price has
22:04year after year so one way to make it
22:07stock attractive to investors
22:09is by offering high dividends tech
22:12universal corporation or uvv for example
22:17if you take a look at its dividend rate
22:19you will see a ratio of
22:24unimaginably high you probably won't
22:27anything like that in the entire market
22:30even world's largest company apple pays
22:34two percent in dividends but i
22:37personally would not invest in this
22:39company and wouldn't advise anyone else
22:43the stock price was around 50 dollars
22:46and you might imagine that it might have
22:49grown slightly since then
22:50at least but it didn't the price
22:54fell to 43 and the company
22:57doesn't seem to have any future so it
23:00high dividends to keep its stock
23:02attractive to investors
23:04because who knows where else the stock
23:07a few years from now compare that to
23:10apple that pays only
23:12two percent in dividends but the stock
23:15by 337 percent in the same period
23:20cash flow is great but losing your
23:23is bad and the stock market is filled
23:28so don't choose to buy stocks solely
23:31it has the highest dividend yield
23:36you might be wondering by now that are
23:38there any good companies that are both
23:41and paying high dividends the answer is
23:45yeah there are check coca-cola for
23:48the company exists since 1886
23:52and it began paying dividends before you
23:55it has quite a good dividend rate of 3.2
23:59of course the stock price hasn't been
24:02growing as some of the tech companies
24:05many believe that there aren't much left
24:07for coca-cola to grow
24:09but it's definitely not going to fall
24:12the home depot is another example they
24:15have been paying a dividend yield of
24:172.5 percent consistently the stock price
24:20doubled in the last five years johnson
24:23johnson has been around
24:24since 1886 and is regarded as
24:27the king of dividends it is a big name
24:30in the pharmaceutical industry
24:32it also plays a key role in developing
24:35the vaccine for the current pandemic
24:37the stock price might just boom once the
24:41the companies that don't usually pay
24:43dividends are usually
24:45tech companies since the idea behind it
24:49the company would be far better if it
24:51reinvests that money
24:53back and grows faster companies such as
24:56google facebook and tesla don't pay a
25:01which is why investors love apple it's a
25:04tech company that both
25:05excels in hardware and software it has a
25:08built-in ecosystem that provides it
25:11with a consistent cash flow its stock
25:14rises as much as other tech companies
25:18a dividend yield of around two percent
25:23so let's try to answer the question how
25:26to invest to make a thousand dollars a
25:30well since dividend yields are different
25:33from one stock to another
25:34and we don't want to invest in companies
25:36that don't seem to do great in the long
25:39we'll take into account companies that
25:41aren't only paying great dividends
25:44but also grow over time such as apple
25:48johnson johnson the home depot and so on
25:51it's difficult to find an exact dividend
25:53yield since stock prices change every
25:56year so does dividend yields it also
25:58depends on the portfolio you build
26:00but let's assume that you're going to
26:04annually to receive a thousand dollar of
26:08you need to invest around five hundred
26:12that will provide you with twelve
26:15thousand five hundred dollars a year
26:17or slightly higher than a thousand
26:21and suppose you want to make enough from
26:24completely in that case you need to
26:272 million dollars to make 50 000
26:32a year i guess you aren't impressed
26:35because investing half a million dollars
26:38in real estate for example
26:40would provide you a much higher passive
26:43than 12 500. and that's why
26:46investors are more concerned about the
26:48stock price than dividends
26:51amazon might not have paid a dime in
26:54but its stock price rose by 522
26:58in the last five years amazon investors
27:02much more than any dividend investor
27:06imagine does that mean investing in
27:13if you have a big enough portfolio that
27:16invests in wide variety of stocks
27:18making dividend stocks part of your
27:20portfolio is a good decision
27:23but you also have to consider that these
27:25stocks are growing as well
27:27so if you use these dividends to buy
27:29more stocks of the company
27:31you will end up with a pretty good
27:32investment the home depot stock price
27:36by 26 percent last year and it paid
27:402.5 percent in dividends which makes it
27:43a pretty appealing investment
27:45on the other side if you're just
27:47starting out with a small amount such as
27:49a few thousand dollars you can't afford
27:52to buy a property to rent it out
27:54so starting with dividend stocks might
27:56be an option to consider
28:02the company that didn't only completely
28:04recover from the recent stock market
28:07but is hitting a record high with a
28:09valuation of 1.5 trillion dollars
28:12it seems like it will be one of the
28:14first companies to cross
28:16two trillion dollar valuation but how
28:19much your money would worth if you have
28:22thousand dollars in microsoft's ipo
28:25as of 2018 your thousand dollars would
28:30million dollars and in the last two
28:33years the stock price more than doubled
28:35so you would have earned much more than
28:39when you think about passive income
28:41you'll probably imagine
28:42real estate in that type of income but
28:44the stock market isn't just about the
28:47but also a way to earn passive income
28:51when you buy a stock you're literally
28:52becoming an owner of that company
28:55one stock isn't going to give you that
28:57much influence over the company
28:59but nevertheless the company is
29:01obligated to share with you
29:03some of its profits and that is called a
29:07some companies pay a lot of dividends
29:09others not that much
29:11in the case of microsoft it's two
29:14or a little over one percent
29:18if that doesn't seems like a lot of
29:19money let me tell you that
29:21some companies don't pay anything like
29:26over many decades microsoft has proved
29:29one of the best investments ever its
29:32revenue has been increasing consequently
29:35every year with 125 billion dollars
29:38just last year it's sitting on a cash
29:41pile of 136 billion dollars
29:44with no signs of slowing down the
29:47company is founded on the basis of
29:50despite the success of mac it's still
29:54the computer market with windows being
29:56almost on every computer
29:59it even began producing its hardware in
30:06if you know anything about amazon you
30:08know that the backbone of its success is
30:10amazon web services where amazon
30:13on-demand cloud computing platforms and
30:16it's controlling one
30:17third of the market but do you know who
30:20is the second biggest player
30:22in that market yup you guessed it right
30:26although dividend yield isn't high at
30:29it's still there and the company is
30:32unprecedented speed i won't surprise if
30:35it hits a two trillion dollar valuation
30:38in the next two to three years so if you
30:40want a super safe investment that's
30:42growing tremendously and pays
30:44constant dividends you should be looking
30:51the second on our list is johnson and
30:54you're definitely familiar with this
30:57it's one of the oldest companies out
31:01medical business with multiple companies
31:04its products are on the shelves of every
31:07country all around the world
31:09the stock price hasn't been growing as
31:11some of the tech companies out there
31:13but it's the king of dividends for over
31:1657 years in a row now it has been
31:19increasing its dividends
31:20and has been one of the safest
31:22investments you could make
31:24annually they pay a dividend of four
31:28which is a dividend yield of 2.75
31:32that's more than what some of the
31:34largest corporations pay
31:37i know that some of you aren't impressed
31:39yet because that barely beats inflation
31:41however you have to consider that the
31:44safer the investment
31:45the lower the returns are it's also
31:48working on creating a vaccine for the
31:51if it succeed its stock price might soar
31:55in the case of johnson and johnson
31:57historically speaking for six decades
32:00it hasn't just been paying dividends but
32:02kept increasing them
32:04so if you're leaning on investing long
32:07johnson johnson might be one of the
32:09safest passive income stocks out there
32:14the third on our list is also a tech
32:16company it's a company that manufactures
32:19your favorite smartphone
32:20yes i'm talking about apple this company
32:24introduction you probably know a lot
32:28but let's take a look at its dividend
32:29yield currently it's a little lower than
32:32one percent or 3.28 dollars per stock
32:36as of may 2020 don't be scared by the
32:39fact that it has such a low dividend
32:42the problem is that the stock price has
32:46fast that you have to take a look at the
32:49for the last decade apple had a 2 yield
32:52sometimes it was higher other times it
32:56but it was around two percent and the
32:58company is in such a great
33:00shape that even after losing around 30
33:02percent of its value due to the pandemic
33:05it's back and is hitting a new record
33:08since the invention of the iphone the
33:10company's revenue kept increasing year
33:13even though the smartphone industry has
33:15stopped growing in recent years
33:17since it has reached its limits the
33:19company still managed to keep its
33:22at 260 billion dollars last year
33:25the company is focused now on taking
33:27over the budget phone sector
33:29with the introduction of iphone se of
33:32course a 400 dollar is still
33:35expensive but apple holds a brand name
33:38that people around the world
33:40value and are ready to pay the extra
33:42even if it's a budget phone
33:45the pandemic illustrated to us that it's
33:48safest companies in the world and
33:50nothing would stop it from growing
33:52even though it might be paying a
33:56you can be confident that on the other
33:58side the stock price is also increasing
34:01making you wealthier
34:04the next on our list is lows an american
34:08retail company specializing in home
34:11the company operates a chain of retail
34:14stores in the united states and canada
34:17and as of november 2018 loads and its
34:21operate 2 000 home improvement and
34:24hardware stores in north america
34:26it's the second largest chain in the us
34:31it has been growing since then if you
34:34take a look at the stock price
34:35you realize that in the last five years
34:38the stock price has doubled
34:40although it suffered tremendously due to
34:43like the companies we have mentioned
34:45previously it recovered quickly
34:48it was one of the first companies that
34:50suffered most by losing half of its
34:52overnight currently it has a dividend
34:561.7 percent or 2.2 dollars per share
35:00which is not bad for such a stable and
35:05these companies might not seem to have a
35:08however we have to consider the fact
35:12they are safe compared to the rest of
35:14the market but more importantly
35:16their stock is also growing for instance
35:19lowest stock in the last 12 months
35:21increased by 30 percent
35:23it was also paying a dividend so you're
35:26from the rise of the stock on one side
35:28and also having a passive income
35:30flowing into your pocket on top of that
35:34you're confident that your investments
35:36aren't going anywhere
35:37since it's a strong company and the
35:40is the proof of that and finally
35:44the home depot the largest home
35:46improvement retailer in the united
35:49supplying tools construction products
35:53it operates many big boxes format stores
35:56across the united states
35:57and its territories of guam and the us
36:01all 10 provinces of canada and 31 states
36:04and federal districts of mexico
36:06compared to the rival lows it pays a
36:09higher dividend of 6
36:11or 2.34 percent in the last five years
36:14the stock price has increased from 110
36:18to 254 dollars when writing the script
36:21with strong financial statements and 110
36:24billion dollars in revenue
36:26last year the company is looking forward
36:28to taking advantage of the digital world
36:31the company has been investing in
36:33digital channels with
36:34one home depot initiative that it
36:36announced in december 2017.
36:42the dividends of these five companies
36:44might not seem impressive
36:45but when we are talking about passive
36:47income you want something safe
36:49something you don't have to look after
36:53there are many companies that provide
36:55much higher dividend yield
36:56but the stock price can crash overnight
36:59and those high dividends
37:01won't make up for the losses of the
37:04that's why this list is made out of the
37:06safest companies in the market
37:08that pay some dividends and are growing
37:12when you buy a stock it doesn't bring
37:14you any tangible value
37:16just hold it and wait for someone else
37:19a higher price for it and when you make
37:22then only you profit or maybe even lose
37:26however i want to point out that just
37:28because one company pays a dividend
37:30doesn't make it a better investment
37:32than other companies if the company
37:34would not pay dividends
37:36and reinvest that cash back into the
37:38company to grow it faster
37:40maybe that's a better option amazon is a
37:43perfect example of that
37:44until today the company hasn't paid a
37:48even after three stock splits the amazon
37:522600 investors clearly made a much
37:56bigger return on the stock price than if
37:58they would have received
38:03how much do you think jeff basis makes
38:05per day a hundred thousand dollars
38:08how about a million dollars a million
38:12365 million dollars a year
38:14but in 2019 bases earned 39.2 billion
38:20which means if you divide it into the
38:22number of days in a year
38:24that will amount to 107 million dollars
38:27every 24 hours isn't that insane
38:31but that's not by accident because rich
38:34focused on buying assets an asset is
38:37basically something that consistently
38:40into your pocket unfortunately we mostly
38:43spend our money buying liabilities such
38:46cars phones and houses that constantly
38:50out of our pocket that's why we don't
38:52see our wealth grow as much
38:54as rich people do in fact some people
38:57are in so much debt that they get
38:58poorer every day since interest is so
39:03that's why here in this video we are
39:05going to explore the 7 most
39:06important assets that the rich buy to
39:10so make sure to listen carefully because
39:13one of the most valuable things you will
39:18number one businesses if you have ever
39:20watched shark tank you probably
39:22realize that sharks are trying to buy
39:24equity in valuable businesses
39:26especially those with bigger potentials
39:29the best investment you can ever make is
39:31in a thriving business
39:33what makes a business different from all
39:35other assets is that
39:36it constantly produces something be it a
39:39service or a product
39:41they constantly improve their products
39:43or come up with new ones
39:44to stay ahead of their competitors
39:46having a stake in a valuable business
39:48is the best way to keep your money
39:50growing and generate cash flow
39:53of course for most people that's not an
39:55option because buying a piece of a
39:57business is simply too expensive
39:59even if you're talking about a corner
40:02however the financial system we have
40:04built over the centuries is so advanced
40:08are broken down into millions if not
40:10billions of small pieces
40:12which allows almost anyone to own a
40:15of any multi-billion dollar company by
40:18investing in the stock market
40:20if you want to know more about the stock
40:22market then check out our previous video
40:24on how to buy a stock
40:25which link you will find in the
40:29number two royalties in 1999
40:32jeff bezos filed a patent for a method
40:35of ordering items online
40:37it's called one click buying it's a
40:40technique that allows the customers to
40:42make a purchase with the payment
40:44that they have used previously and saved
40:48instead of manually inputting billing
40:50and shipping information
40:52for a purchase every single time a user
40:55one click buying by using a pre-defined
40:58address and a credit card number
41:00to purchase the item when you buy an app
41:03from the app store you don't
41:04re-enter your credit card information
41:06you simply double-click on the site
41:08button and the software will
41:10automatically use your saved credit card
41:12and until 2017 apple and every other
41:16company that used this technique
41:17paid a small royalty to jeff basis for
41:20using his innovation
41:22it might sound silly to you but that's
41:26in order to encourage innovation
41:28governments have set up a system of
41:31since you have worked so hard to
41:32innovate a new product or service
41:35you will be granted an exclusive 20-year
41:38where no one is legally allowed to use
41:41you or the people you have given
41:44of course you can use your innovation to
41:46profit from it directly
41:48or you can license it to others for a
41:50small commission fee every time
41:52they use it and potentially earn
41:55as jeff bezos did it's probably one of
41:58the best passive income ideas ever
42:00however building a useful technology
42:04that's why companies especially in the
42:08thousands of patents every year even if
42:11they don't need it since if someone else
42:13uses that technology
42:15they will have to pay them a royalty
42:18next mutual fans there are two types of
42:22the first one is when you don't have
42:24enough of it we're probably all familiar
42:27but the second is when you have too much
42:29money and you have to manage it
42:31keeping it under your mattress isn't a
42:34inflation is going to eat it out over
42:37but neither keeping it in the bank is a
42:41interest on fixed deposits is too low
42:44however you've got another option which
42:48mutual funds are not index funds index
42:50funds blindly invest in a certain
42:52index like the s p 500 but mutual fans
42:56carefully analyze the market and try to
43:00a small margin when you invest a billion
43:04a one percent difference will make a
43:07because it will amount to 10 million
43:11so when you are given an option with two
43:13or three percent higher
43:14you're looking into making extra 20 or
43:18that's why the rich always try to keep
43:22in mutual funds and just watch it grow
43:26but an asset doesn't necessarily means a
43:28physical product or a royalty
43:31it could be a skill of course it's not
43:34an acid in the traditional meaning
43:36but it is in many different ways having
43:39a skill that's always in demand is a
43:41constant stream of income
43:43even if that takes some of your time
43:46surgeons it's a highly complex skill
43:50years of education and training however
43:54it means there isn't much competition
43:56and means that you can charge a premium
43:59that's why a lot of surgeons are
44:01actually millionaires
44:03since they are paid generously of course
44:05that applies to other professions such
44:08lawyers physicians and so on however
44:11with the rise of internet
44:12skills such as coding online cells and
44:15programming languages
44:16are becoming vital and can be
44:20it's a perfect option for those who are
44:22at the beginning of building their
44:24if you don't have enough to invest in
44:25the stock market you can invest in
44:27acquiring more skills that would
44:29potentially generate
44:31much more in the long run
44:34at number five we have a real estate
44:37probably most people's favorite type of
44:39asset and that's not by
44:41accident you can touch it feel it and it
44:44one of the basic human needs shelter
44:48there is almost always a demand for it
44:50rental property is probably the best
44:53passive income asset
44:54you can have of course that doesn't mean
44:57any hustle and capital but it's
45:00manageable to a certain degree
45:02what determines the quality of real
45:04estate is its location
45:06quite often if it's placed not in the
45:08most suitable location
45:10it can turn into a huge liability where
45:13you can't rent it out
45:14but still have to pay the utilities i
45:18people who have inherited properties
45:20where they don't want to live but also
45:22can't rent out since it's not a popular
45:26but they still have to pay the bills to
45:27keep the house free of debt
45:30however if it's a desirable place it
45:33rented out even if it's not in the best
45:37but you know what's much better than
45:41online products like music
45:45it's super difficult to come up with
45:48however once you do it it can
45:50continuously generate income
45:52take an example of eminem for the past
45:56he's been at the top of the music
45:57industry the music he has released such
46:00i am not afraid is still listened by
46:03lots of people across the world
46:05even though it was released back in 2010
46:08and with the introduction of spotify and
46:11the artists have gained extra streams of
46:15however you're not limited to music
46:17online products are becoming more and
46:20such as courses presets apps softwares
46:26and finally connections it might not
46:30asset but if you look at it from a
46:32different perspective
46:33they could be much more valuable than
46:36great things happen when talented people
46:39from different aspects of life
46:40come together under one roof if a
46:44knowing the right people can make
46:46starting that business
46:48a million times easier in fact an advice
46:51from the right person could save you
46:53years of experience if not decades
46:56since we live in a world of social
46:59networking using digital tools such as
47:02linkedin or other social media tools
47:04if you want to connect with me head to
47:06our website and shoot me a message
47:09this list could be much longer but i
47:11included what i personally think
47:13are the most important ones if you guys
47:16have enjoyed this video
47:17make sure to give it a thumbs up and if
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