Which is a source of passive income?(1 point) Responses owning luxury cars owning luxury cars owning dividend stocks owning dividend stocks working as a consultant working as a consultant teaching about personal finance
owning dividend stocks
Owning dividend stocks is a source of passive income.
A source of passive income is owning dividend stocks.
To determine this answer, we need to understand what passive income means. Passive income is money earned with little or no effort on the part of the recipient. It is income that is generated from assets or investments rather than from actively working for it.
Dividend stocks are a type of investment where you purchase shares of a company's stocks and, in return, receive regular dividends. Dividends are a portion of the company's profits distributed to shareholders. Unlike a salary or income from a job, dividends can be considered passive income since they are paid out without requiring ongoing work or active management on your part.
Therefore, owning dividend stocks is a valid source of passive income because you can earn money from them without having to actively work for it.