Dividend Income VS Rental Income – Which Passive Income is Better?

Published on December 17, 2020

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Dividend Income VS Rental Income – Which Passive Income is Better?
Learn to invest based on the lifestyle you want build. Whether that is dividends or rental income (Or both) is totally up to you.

Time stamps so you can jump to/rewind to any point in the video.
0:43 – How many videos I’ve published on YouTube.
1:40 – Passive Income – Which one is more passive?
3:22 – Yields – Which one provides higher yields?
4:25 – Which one will make you the richest the fastest
7:53 – How taxes for for dividends and rental income
10:05 – Which one is easier to track for taxes?
11:21 – Risks of dividend investing vs investing in real estate
13:10 – Which investment gives you more control?
14:12 – Other key factors

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Articles regarding dividends vs rental income


Dividend income primarily is generated through owning Paper assets vs rental income that is generated through own real assets. Instead of thinking which one is “better” I encourage you to think about which type of income is more suitable for your lifestyle and your interests after we discuss the differences between the two types of income.

Passive Income

In terms of income passivity you dividend income takes the cake here. With dividends you simply invest in the company stock or etf, and wait for the money to be deposited into your bank account.

With rental real estate on the other hand you will get a check deposited to your bank account, but there are more responsibilities to manage.Being a landlord is not always fun, you may get a call in the middle of the night saying the toilet is clogged, you may have to evict someone who is damaging or not taking care of your property, worse yet, you may have to deal with a renter who doesn’t want to pay you and always seems to have an excuse as to why they are late on their rent.

You can get a property manager involved of course, but that is not full proof you will still want to keep eye on your properties and monitor how the property manager is doing if you want to maximize your profits. Rental income is great but it comes with more leg work so be prepared.


If you are looking for higher yield on your money this is where rental income begins to shine. WIth rentals (Depending on the type of property and the deal you get you may find your self with an average yield of 5 – 10% on your money.

With dividends the yields generally aren’t quite as attractive with the average yield ranging only from 2 – 3% unless you are looking certain type of investments such as REITs, corporate bonds, publicly traded partnerships, etc for a higher yield.

Which asset will most likely allow you to retire the soonest or make you richest the soonest.

Although both asset classes can you lead to you to the same goal, real estate has been the more consistent victor in allowing people to retire sooner and building wealth from what I have observed. . with the exception being if you found the next amazon stock of course.

How is dividend income and real estate income taxed? The answer is it depends.

Starting with Dividend income it can be taxed at either marginal tax rates or capital gains rates For most Americans their marginal tax rate falls between 10% – 22%. This means they would pay anywhere from 10 cents to 24 cents for every dollar of dividend income earned.

If the dividends are qualified dividends then you pay tax at capital gain rates which are even lower. In this case taxes would either be 0% or 15% for most Americans.

How is rental income taxed? You may have heard that real estate has numerous tax advantages, and it does, but if you have “net rental income” at end of year after all expenses are deducted you will pay taxes on that rental income at your marginal tax rate. Like i said for most americans that is between 10 cents to 24 cents of every dollar of rental income earned.

Passive Income Other Than Stocks

Passive Income Other Than Stocks, Dividend Income VS Rental Income – Which Passive Income is Better?.

Passive Income Source

The first option is trying to find part-time jobs in your area. Google’s keyword tool is an excellent example of an easy to use program. The primary difficulty of establishing passive income streams is getting your mind set straight.

Dividend Income VS Rental Income – Which Passive Income is Better?, Enjoy more full length videos about Passive Income Other Than Stocks.

Why Rich People Focus On Passive Income And Recurring Income

You will find many such examples of conversations where this is the primary topic. Always produce worth to individuals in your market. Remember that the objective is to get paid well, for a bit of great.

When beginning on your trainee life with any trainee loan, everything is a new experience. Nevertheless one of the most significant downsides to all this is to guarantee your trainee loan spending is kept under control. This is all the time throughout your trainee days. And this is made that far more challenging right from the start as you have to buy loads of new text books to begin your studies. This is along with having to buy your own laptop and printer. So there are a great deal of expenses sustained right from the start. Quickly the quantity on your trainee loan begins to look rather big.

Realty. This is among the most apparent passive income sources. Nevertheless, it depends how you buy realty to see whether it’s truly a passive income source. The rich invest for capital. That’s more passive. When and that residential or commercial property gives them a paycheck each month no matter what, that indicates they invest in real estate. They do not care so much if the marketplace is high or low, they simply desire their month-to-month check. The middle or typical class individual invests for capital gains. That indicates they buy low and sell high. Nevertheless this that type of income is not passive; it’s active. That’s the exact same thing as offering an item when. It’s not on going. It’s difficult to collect constant wealth that method.

Unlike many, when it comes to beginning your working life in your picked profession, you’re under no pressure. You have your passive incomes streams still working for you. So you have routine income coming in all the time to keep you afloat. So even if you have no task there is no real monetary pressure on you. And when you begin work, you can establish much more passive income streams to supplement your primary day task income. This could be so you can buy the right house or flat in the best areas. When they begin their working life, in the on the other hand other ex students with huge trainee loans battle. They find it difficult to make ends fulfill on a monthly basis. They still have to settle all of their trainee loan for several years to come.

Now let’s state that you have 100 employees, staff member, reps, etc and everyone just works 5 hours per day and just 5 days per week implementing passive income ideas that pay you over and over once again for their efforts. That would amount to 2500 hours per week. Mouth Watering Huh!

You can begin a short article directory site using the soft products like post dash board if you have cash to invest for hosting and the other expenses of setting up a website. The post authors will flood your website with quality posts and this is a sure fire method of creating passive AdSense income by leveraging other people’s efforts.

I used to work to earn my income, however I realized I could enjoy myself far more if I choose my dreams and do what I enjoy doing. So, I have actually made a list of what I enjoy, and I am open to originalities at the exact same time. I love going over finance, so I created a site where I share my knowledge about personal finance. I love dealing with Excel, so I do some freelance Excel work. I love to check out and study the stock market, so I buy stocks. These are simply 3 of the important things I love and where I can produce new income sources for myself. There are a lot more. I hope this can inspire you to recognize that you, too, can produce new income sources in your life by doing what you enjoy.

This intricate pattern of back multiplying and scratching income streams through associated items is not dishonest in the least. However you ought to be aware of it and keep your charge card in your pocket unless you have a clear and present need for an item. Indeed, as you advance in your internet marketing organization, you will benefit from as a lot of these money making techniques as possible. Keep in mind, the holy grail of the internet online marketer is to produce passive income streams. Income which does not need a good deal of hands on management. Anything else is simply trading one employer for another.

I’m sure you do and that is the primary reason why you’re taking a look at this post today. There are passive income ideas based upon marketable abilities, such as composing. Know you wish to buy an automobile in 12 months?

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