Generating Passive Income Thru Dividends

[target2019]

What books would give me the basics to know what and where to invest in

Many books can be sampled at Amazon and other sites. I'd read the reviews at Bogleheads to make sure any given book is right.
https://www.bogleheads.org/wiki/Books:_recommendations_and_reviews

Tobias and Bernstein are authors I enjoyed.

 

[OldShooter]

What books would give me the basics to know what and where to invest in

"The Coffeehouse Investor" by Bill Schultheis and "The Bogleheads' Guide to Investing" by Larimore et al.

After these, "A Random Walk Down Wall Street" by Burton Malkiel (get the latest edition) or "Winning the Loser's Game" by Charles Ellis.

Do not buy or read any books that claim to have a scheme that will make you rich. The only way to get rich via a book like this is to write one. If anyone actually does have such a scheme, they are not going to tell you. They are on a private tropical island somewhere, relaxing.

 

[mrfeh]

What books would give me the basics to know what and where to invest in

https://www.bogleheads.org/wiki/Bogleheads®_investing_start-up_kit

 

[RAchip]

What books would give me the basics to know what and where to invest in

The easiest thing is just to do what Buffet said: 90% in Vanguard S&P 500 Index fund, 10% in US Treasuries Bond Fund. If 90/10 makes you too nervous, you can do 80/20 or 70/30. Historically, just putting your money in an S&P 500 index fund would have put you in a small crowd of the most successful investors ever (in fact, you would have outperformed Buffet over the last 10 years).

Full disclosure: I don't totally practice what I preach. While I do have a large amount in S&P 500 funds, I also have a large amount in individual blue chip dividend growth type stocks and a substantial portfolio of individual municipal bonds.

 

[youbet]

To be clearer, look at the general case, it's not just "dividend income".

All withdrawals from a traditional IRA are taxed as regular income
-ERD50

Except for your basis, which for many is zero. But a number of us made after tax contributions to TIRA's and have a basis.

 

[jimbee]

What books would give me the basics to know what and where to invest in

I would recommend starting with If You Can, by William Bernstein. The book is targeted at young investors, but the information can work for anyone.

It's an easy read, the sixteen page booklet can be downloaded here. https://www.etf.com/docs/IfYouCan.pdf

 

[pc95]

I have both mutual funds and single stocks. I've used this following site for single stocks :

https://www.dogsofthedow.com/highest-dividend-paying-large-cap-stocks.htm

As some have noted -
I would certainly not put all my savings into 1 single stock here or even a few stocks, but I do invest small to medium portions of funds to singles in this list. Be careful, many of even the large cap high dividend stocks may be quite risky too. For example, although a stock may offer a 5% dividend, it could fall say 30% in year over year. In once case, I've owned ATT for several years and have had to endure it being red for much of the time. Finally in black again and thinking about selling a chunk now. It's generated a nice clump of dividends during that waiting period, but its a leap of faith hoping that the stock makes it back up to black position. This is one reason why I very seldom will purchase a single stock sporting a peak position. The warning goes, past performance may not indicate future performance.

CDs meanwhile were looking nice last year until the fed slashed down the rates that had taken a few years to build. I was able to secure a 5-year 4% CD last November, and am sorry I didn't get more into it. I was not expecting such a plummet and slash. CD's unfortunately are taxed at normal rates vs dividends.