3 Passive Income Assets The Rich Are Buying Right Now (While You’re Working)

"Let's start with Verizon. At the time of me recording this video, Verizon is paying out a dividend of around 6.2% a year. Chevron is paying out a dividend of around 4.3% a year, and Merkin Company's paying out a dividend of around 3.8% a year."

"Let's start with Verizon. At the time of me recording this video, Verizon is paying out a dividend of around 6.2% a year. Chevron is paying out a dividend of around 4.3% a year, and Merkin Company's paying out a dividend of around 3.8% a year."

"So we can take a look at Verizon. It's paying out a very strong 6.2% dividend. But if you look at the Verizon stock over the last 5 years, the Verizon stock is down 25% over the last 5 years."

"Another example is VYM. As a disclaimer, I'm personally invested in VYM. This is a fund created by Vanguard and this is focused on investing in a broad basket of high dividend paying stocks in the United States. So not as specific as this, but it's investing in a broad basket of high dividend paying stocks in the United States. And if one of those companies were to go bankrupt, well, this company would kick them out and replace it with another company at the time of recording this video is paying out a 2.6% annual dividend."

"And then we have Mort, M O R T. This is a REIT real estate investment trust. At the time of recording this video, it is paying out a 12% dividend, which can sound very attractive, but remember what I talked about here. High dividend yield doesn't necessarily mean good investment. This is focused on investing in real estate investment trusts, more specifically companies that are involved in the dealing of mortgages, which is very risky."

"This fund is focused on investing in more of the developed countries around the world. Not the emerging markets, just the developed countries. So it's working to provide a little bit more of stable income outside of the United States. But again, risky because it's not the United States, but a little bit less risky than just emerging markets because it's focused on the developed markets trying to produce that stable income outside of the United States. And at the time of recording this video is paying out around 3.6% a year."

"For example, there's an ETF called SG OV. This ETF, SGOV, is a short-term treasury ETF. Meaning, the price of this ETF doesn't really vary. You're investing into this ETF just to generate monthly interest. And because it's an ETF, it trades on the stock market. So, you can buy it with any stock brokerage that you have. And now, you're going to be getting paid with monthly interest payments deposited into your account. Kind of like a dividend, but it's not a profit share. It's an interest payment that you're getting. And it's going to be monthly, not every three months like most dividends are. And because it is a treasury, meaning a loan to the United States government, you get some additional benefits, which is that your interest is generally not subject to any state taxes or local taxes. So, if you are in a high tax state like New York or California, this could be nice because now you can generate interest and not have to worry about paying these taxes. But there are a couple risks you want to be aware of. Number one, the interest rate that you're going to get is going to depend on the interest rate set by the Federal Reserve Bank. Like at the time of recording this video, SGOV is paying out an interest rate of around 4% a year."

"And let's assume that you can rent out the other three units for $1,300 a piece for one, two, and three units. Now you have a mortgage, but your costs are going to be subsidized through the help of your nice neighbors. That means your neighbors are going to pay you $46,800 a month, but again, you have property expenses. You have to pay for your property taxes. You have to pay for insurance. You have to pay for your maintenance. You have to pay for the management fee. Although yes, you could manage these units, but you still want to factor in a cost for that management fee. And then you have to factor in the vacancy cost because people will move out at some point. So let's assume again that about half of your revenue is going to be expenses. That means you're going to be left with around $23,400 a year after paying for your expenses, but you still got your mortgage. And if you go out and you put 20% down, you put $120,000 down on this property, you finance the other $480,000 at 6 12% for 30 years. Well, that means your monthly mortgage payment is going to be $3,000 a month or $36,000 a year. Which means you take this money, this $23,000, and you apply it to the $36,000. And that means your monthly payment out of pocket to live in this property is going to be around $1,000 a month, which means your mortgage payment to live in the property is less than your neighbor's rent."

"Let's start with Verizon. At the time of me recording this video, Verizon is paying out a dividend of around 6.2% a year. Chevron is paying out a dividend of around 4.3% a year, and Merkin Company's paying out a dividend of around 3.8% a year."

"According to Forbes, banks are quietly tightening up their lending standards, meaning it's getting harder for people and businesses to get a loan. We've seen this happen before. In the past, banks will get stricter about their lending practices. It has been an indicator for an economic slowdown. And now with banks tightening the lending standards again in 2025, the question is what's coming"

"At the time of me recording this video, Verizon is paying out a dividend of around 6.2% a year."

"Chevron is paying out a dividend of around 4.3% a year"

"So, let's take a look at Verizon. It's paying out a very strong 6.2% dividend. But if you look at the Verizon stock over the last 5 years, the Verizon stock is down 25% over the last 5 years."

"Number one is N OL Noble, which at the time of recording this video is paying out around a 2% annual dividend. And Noble is investing in companies that are a part of the S&P 500, meaning this is only investing in companies that are in the 500 largest companies in the stock market. But not just that, they also have to be paying out a dividend. And not just that, they also have to be a dividend aristocrat. Meaning, not only have they paid out a dividend, but they must have had to increase their dividend every year for at least the last 25 years. So, this is focused on investing in those specific large companies that have been working to increase his dividends consistently."

"Another example is VYM. As a disclaimer, I'm personally invested in VYM. This is a fund created by Vanguard and this is focused on investing in a broad basket of high dividend paying stocks in the United States. So not as specific as this, but it's investing in a broad basket of high dividend paying stocks in the United States. And if one of those companies were to go bankrupt, well, this company would kick them out and replace it with another company at the time of recording this video is paying out a 2.6% annual dividend."

"And then we have Mort, M O R T. This is a REIT real estate investment trust. At the time of recording this video, it is paying out a 12% dividend, which can sound very attractive, but remember what I talked about here. High dividend yield doesn't necessarily mean good investment. This is focused on investing in real estate investment trusts, more specifically companies that are involved in the dealing of mortgages, which is very risky."

"Take a look. B YMI. This is another ETF created by Vanguard is essentially the same thing as this, but this is focused on international stocks, not in the United States, that are focused on companies that have higher than average dividend yields. And a lot of these companies are in emerging markets, meaning the smaller countries that are working to grow. So, you could see the potential for the country to grow and the company to grow, but more risk because it's not the United States. So you could also see those same countries and companies fall which could hurt the dividends but at the time I'm recording this video is paying out a little bit over 4% a year in dividends."

"Another one is LVHI. This fund is focused on investing in more of the developed countries around the world. Not the emerging markets, just the developed countries. So it's working to provide a little bit more of stable income outside of the United States. But again, risky because it's not the United States, but a little bit less risky than just emerging markets because it's focused on the developed markets trying to produce that stable income outside of the United States. And at the time of recording this video is paying out around 3.6% a year."

"For example, there's an ETF called SG OV. This ETF, SG OV, is a short-term treasury ETF. Meaning, the price of this ETF doesn't really vary. You're investing into this ETF just to generate monthly interest."

"And because it is a treasury, meaning a loan to the United States government, you get some additional benefits, which is that your interest is generally not subject to any state taxes or local taxes. So, if you are in a high tax state like New York or California, this could be nice because now you can generate interest and not have to worry about paying these taxes."

"Like at the time of recording this video, SGOV is paying out an interest rate of around 4% a year."

"And let's assume because this is a nice house that they're going to pay you $1,900 a month in rent. Yes, this is possible. Just go back to that Zillow listing and you'll see that the $180,000 house has a Zestimate of $1,957 a month in rent."

"Now, if we do some rough math, if 50% of your revenue goes to expenses, that means you will be left with around $11,400 at the end of the year in profit."

"Let's assume that you can buy this 4unit building for $600,000. Yes, these types of units still exist. Take a look at this 4-unit building in a nice suburb of Michigan for less than $400,000 for sale."

"And let's assume that you can rent out the other three units. And let's assume that you can rent out the other three units for $1,300 a piece for one, two, and three units. Now you have a mortgage, but your costs are going to be subsidized through the help of your nice neighbors. That means your neighbors are going to pay you $46,800 a month"

"So let's assume again that about half of your revenue is going to be expenses. That means you're going to be left with around $23,400 a year after paying for your expenses, but you still got your mortgage."

"And if you go out and you put 20% down, you put $120,000 down on this property, you finance the other $480,000 at 6 12% for 30 years. Well, that means your monthly mortgage payment is going to be $3,000 a month or $36,000 a year."

"Which means you take this money, this $23,000, and you apply it to the $36,000. And that means your monthly payment out of pocket to live in this property is going to be around $1,000 a month"

"So, you live in this property for a year and a day, and now you move out, and then you rent this unit out for $1,300, just like all the other units. Now, you own this property. You have your primary mortgage on it because now you have a lower mortgage rate because mortgages for your primary house is cheaper than an investment loan mortgage. And now you're making that additional $1,300 a month, which means you're profiting $300 a month on this property."

"and Merkin Company's paying out a dividend of around 3.8% a year."

"According to Forbes, banks are quietly tightening up their lending standards, meaning it's getting harder for people and businesses to get a loan. We've seen this happen before. In the past, banks will get stricter about their lending practices. It has been an indicator for an economic slowdown."

"And now with banks tightening the lending standards again in 2025, the question is what's coming"