5 Passive Income Ideas to Make Money & Build Wealth in 2023

3. Dividend Stocks Investing

Investing in dividend stocks is one of the best passive income ideas on our list. Dividends are payments made by a corporation to its shareholders as a distribution of a portion of the company’s profits. For investing in dividend stocks, investors are advised to focus on companies that have raised their dividends for years. Altria Group, Inc. (NYSE:MO), McDonald’s Corporation (NYSE:MCD), and Texas Instruments Incorporated (NASDAQ:TXN) have increased their payouts year after year, gaining investors’ attention. Overall, dividends have accounted significantly for the market’s overall returns in the past. In our article, we reported that dividends represented nearly one-third of the stock market’s returns since 1926.