Unscripted: Life, Liberty, and the Pursuit of Entrepreneurship pdfdrive com

Stock
Dividends

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2.
REIT Dividends
3.
MLP Partnership Income
4.
Bond Interest
5.
Loan Interest
6.
Managed Income

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Stock Dividends
Dividends are corporate profits received from common or preferred stock
ownership in a public or private company. Dividend-paying corporations “pass
through” a portion of their profits to shareholders, usually quarterly. If you buy
10,000 shares of Johnson & Johnson (JNJ), which pays a quarterly dividend of
three dollars per share, you should receive $30,000 in dividends per year.
Publicly traded companies who pay dividends post their dividend histories and
upcoming payments. Dividend-paying corporations do so voluntarily and are
not obligated to pay future dividends, as such payments are influenced by cash
flow as well as macroeconomic events.
Examples:
SO (Southern Company)
CVX (Chevron)
MMM (3M)

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Reit Dividends
Dividends received from REITs, or real-estate investment trusts, are an
excellent income source for the 
UNSCRIPTED
investor. Like stock dividends,
REITs are corporations that manage and operate real-estate-related assets. Such
assets could be tangible assets—such as apartment buildings, hotels, shopping
centers, office complexes—or intangible assets, such as mortgage-backed
securities. Several requirements exist in order for a corporation to be considered
a REIT, namely 75 percent of their assets must be real-estate related. Moreover,
90 percent of a REIT’s taxable income must be distributed to shareholders. This
requirement makes their dividend yields higher than average and quite
attractive.
Public REITs are traded on major exchanges, highly liquid, and give you a
great opportunity to enjoy real-estate income without the hassles of real-estate
ownership: broken air conditioners, busted water heaters, and unruly tenants.
Examples:
AVB (AvalonBay)
DLR (Digital Realty)
EQY (Equity One)

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