7 Proven Ways to Earn $5,000 – $9,000 Per Month Passive Income Monthly (2024)

Having a stable passive income allows you to cover your basic expenses, save for the future, and have more freedom over how you spend your time. While generating thousands of dollars in passive income per month may seem out of reach, it is possible with the right strategy and effort.

Dividend stocks pay shareholders a portion of the company's profits on a regular basis. The payouts are considered passive income because you can collect the dividend whether you actively trade the stock or not.

• To generate $5,000 per month in dividends, you would need to have a portfolio value of around $1 million, invested in stocks with an average return of 5%.
• For example, Johnson & Johnson shares currently yield 2.7% annually. $1 million invested would return approximately $27,000 per year or $2,250 per month.
• Top dividend stocks like Apple, Microsoft and JPMorgan Chase pay a yield of 2-3%. Combining higher and lower interest rate stocks can produce an average dividend income of 5% on a stock portfolio.
• Research shows that dividend stocks tend to outperform stocks that don't pay dividends over time. The S&P 500 Dividend Aristocrats Index has averaged an annual return of 14.34% over the past decade, compared to 13.74% for the S&P 500 Index.

Owning rental properties can usually provide passive income after the properties are acquired and rented. There are several options, such as investing in real estate investment trusts (REITs), rental properties, and real estate crowdfunding platforms.

• Real estate investment trusts (REITs) allow you to invest in rental properties like stocks. REITs pay 90% of their taxable income as dividends to shareholders.
• Investing $500,000 in REITs with an average return of 5% will earn $25,000 per year or $2,083 per month in dividends.
• Directly owning rental properties…