Investing in the stock market can be a lucrative way to grow your wealth over time. One of the most successful companies in recent years has been Amazon, with its stock price soaring over the past decade. If you had invested $1,000 in Amazon stock 10 years ago, you would now have roughly $10,000. However, despite this impressive gain, Amazon is not a dividend stock, meaning it does not pay out regular dividends to its shareholders.
But what if you could still earn passive income from Amazon’s success? One way to do this is by investing in a real estate investment trust (REIT) that benefits from Amazon’s growth. One such REIT is Stag Industrial, which specializes in industrial properties and counts Amazon as one of its tenants. By investing in Stag Industrial, you can indirectly benefit from Amazon’s success while also earning passive income through dividends.
So, what exactly is a REIT? A REIT is a company that owns, operates, or finances income-producing real estate. By investing in REITs, you can earn dividends from real estate without the hassle of property management or large capital requirements. Stag Industrial is a $9.8 billion fund that owns 570 buildings in 41 states and pays out 90% of its net taxable income to shareholders. With an annual dividend of $1.48 per share, paid monthly, Stag Industrial offers a 4.23% yield, providing investors with a steady source of passive income.
Investing in REITs like Stag Industrial can be a practical alternative for those looking to generate passive income from their investment in Amazon. Since REITs are publicly traded, you can easily purchase shares through a brokerage, often commission-free. By diversifying your investment portfolio with REITs, you can benefit from the success of companies like Amazon while also earning passive income through regular dividends.
In conclusion, while Amazon may not be a dividend stock, there are still ways to earn passive income from its success. Investing in REITs like Stag Industrial can provide you with a steady source of income while also benefiting from the growth of companies like Amazon. Consider adding REITs to your investment portfolio to diversify your income streams and maximize your returns over time.
