According to the Internal Revenue Service (IRS), passive income generally includes earnings from rental activity or any trade, business, or investment in which the individual does not materially participate. Dependable recurring dividends, especially monthly dividends, are a recipe for success.
Many Americans still face the reality that prices for everyday necessities like food, energy, and other necessities remain very elevated. Inflation gradually reduces the buying power of consumer dollars. Getting a monthly dividend payment can help battle the ongoing inflation, which is resting at 3%, but feels much higher on many items.
We screened our monthly dividend stock database, looking for the five highest-yielding companies. While they are much better suited for those with higher risk tolerance, they all deliver big payments every 30 days.
This post originally appeared at 24/7 Wall St.