10 Passive Income Stocks to Invest in in 2021

Hey, everybody. In this video, we're going to talk about 10 passive income stocks that I like right now. And I need to explain a little bit about what I mean by passive income. Passive income to me means it is sending you money while you hold the stock. So my strategy is a little bit different than a lot of the other content that you might see online because I am not betting on zoom going up in value or Apple stock going up going up in value. That's not why or how I choose the stocks that I buy. Instead, I'm looking for income. When I make my money, I make it in my business. I make it in the things that I do every day. And then I put my investments into something that I want to pay me dollars. I don't want to bet on it going up in value. I want it paying me money. So I tell you that because these stock picks are going to look pretty different than what everybody else is talking about. Some of these companies are really boring. But the strategy that I follow looks like this. I look for companies to buy at a discount. That usually means buying companies that other people overlook. It means looking for the companies that aren't being talked about in the news. It's looking at companies that are boring and aren't Tesla. They're companies that are old and established and profitable and paying money to their investors in the form of dividends. And what do I do with that? I take the dividends and I buy more shares. Now, some people think that strategy is pretty boring, and it is, but the returns are not boring. So I've got plenty of videos that go deeper into the strategy about how I buy and reinvest the dividends from this. But for this video, I just want to give you my 10 favorites right now. And of course, I have to say, I am just some ranch rando on the Internet. So I am not a financial advisor. I don't know anything about your personal situation, so I can't give any financial advice. This is not financial advice. This is my own research that I do for fun because I'm a nerd and I like this stuff. But you should consider me an idiot on the Internet who doesn't know what he's talking about. Please don't take whatever I say as financial advice. This is just for fun. And finally, before I give you the list of 10, please note that this is a stock list that might depend on the price of the stock. For example, there's this company that I love. It's a bank. They're called bank of the Ozarks and they trade under ozk. You can look them up and they pay a wonderful dividend. And I was talking about them in February, March of 2020, when everything was getting just killed in the stock market. And they were really underpriced and their dividend was really juicy and the passive income was really exciting. And I talked about it to my members and publicly, well, guess what? Now the stock has gone up to appropriate levels. It's not undervalued anymore. So I'm not interested in that stock right now. So this list might change and you should look at what the price of the stock is to be able to calculate if the returns are juicy enough for you. And I'll give some additional commentary now that I'm going to actually go into the list of 10 stocks. So here are 10 passive income stocks that I'm looking at right now. Number one, Kellogg's. Yes, boring old Kellogg's is really underv right now. They've been overlooked and they're still a profitable company that is paying out really healthy dividends. So I like this stock at $55 and under. It's right around there as I'm making this video that's underpriced based on its historical price. And it stayed low because a lot of other stocks are getting closer looks right now. So I like Kellogg's around $55 and at that price it's paying about a 3.5% dividend. Number two is AbbVie. AbbVie is a pharmaceutical company. They trade under ABBV. One of their profit generators is Humira, which is that drug you see advertised all over the place. I've been an investor in Abbvie for a really long time and they pay very healthy dividends. I like them at any price under $100. At that price, their dividend is about 5% and they've been really profitable for several years. So this is one of those overlooked pharmaceutical companies that's really profitable and a consistent dividend that they've raised consistently for more than 10 years. And I like it at $100 or any price under that. Number three is the insurance company Unum and they trade under UNM. Talk about a boring business. They're an insurance company that owns Colonial Pen, like the company that advertises during the prices. Right. You know what I'm talking about. And a couple other really boring insurance companies might be a boring company, but the dividends are not so boring. So I like Unum at $25 or under. I bought in and I think $16, and that was like a six and a half percent dividend. And they have a history of raising that dividend every year. So I like them at about $25 or under. Anything over than that, I'd probably look somewhere else. But they've got really healthy dividends that they've increased and they have a long established business that's been profitable for a long time. Number four, man, is this overlooked Walgreens? Yes. Walgreens is just, in my opinion, an overlooked passive income stock. I like Walgreens at $45 or under, and they've gotten beaten up in 2020 into 2021. And so they've been historically very cheap compared to where they've been for most of history. As a result, their dividend is really high because the price has come down, but their dividend has gone up. So at $45 or under, I'm buying Walgreens and I own a considerable amount of Walgreens, and they're raising their dividend and is paying passive income. And in my opinion, it's a long blue chip company that is going to continue to be a leader in the health care space. Some people disagree with me, but because of their dividend and their position in the marketplace, I, I am a buyer at Walgreens at any price below 45 bucks. Number five. This is a controversial one. Chevron. So Chevron, the oil company. Are oil companies going to be relevant over the next 10 to 20 to 30 years? Not sure. But as of right now, Chevron is underpriced and they're recovering from the meltdown that was 2020. And it appears that they're going to keep raising their dividend even though they got absolutely killed in 2020. We'll see if that holds true moving forward. But as of the time I'm recording this video, it looks like you're going to keep raising their dividend. It continues to be above 5%, which is really healthy. So I like Chevron at any price under $85 right now. It's right around that point. So if it stays there or drops below, that's when I'm buying. Of course, the controversy of this is whether or not oil companies are going to exist over the next coming decades. I think they'll still have a place, but we'll see if they can make the pivot into alternative energy. And if so, then they might be around for a long time. Next, IBM. IBM is a leader in cloud computing. You probably know they're an absolutely huge company. Well, they've been stagnant as far as the price of their stock for quite some time now. They're kind of been stuck between 120 and $130. And. And since IBM is one of those companies that raises their dividend every year, we now have a really healthy passive income source that's around 5%, maybe even a little bit higher than 5%. And if IBM can continue to be a leader in cloud computing, then they'll continue to be relevant in the marketplace for a long time to come. They have huge infrastructure to be able to make the splash in the marketplace that they need in order to stay relevant. And assuming they do that, then I think they're underpriced for the amount of profit and dividend that they have right now. Here's an underrated source of passive income. Smash. That's smash as in smashing the like button on this video. Turning that like button blue is a great source of passive income for me. No, seriously, because as more people like this video and subscribe to the channel, more people find out about how to build businesses and invest the profits, more people watch my videos, which is a source of passive income for me. So do me a solid and turn that like button blue. All right, back on track. Now. One overlooked stock that produces passive income is. I always get this wrong. First national bank of Long Island. They're a bank that specializes in investments in the state of New York, specifically on Long Island. They've been around for about 100 years and they pay a really healthy dividend that's between 4 and 5%. All right, we got two more to go. The first one, blue chip Coca Cola. So, hey, Warren Buffett owns a lot of Coke. It's good enough for you and me, right? Actually, at the time of this video, Coca Cola is a little bit oversold right now. So I like Coca Cola at any price below like 45 to $50, and they're in that range right now. It's pretty rare that Coke goes on sale. So when it is below that price point, it probably isn't going to stay there for very long. We'll see. Asterix. I've been wrong before. There's a good chance I'm going to be wrong on one of these again. But they have a very healthy dividend that goes up every single year. So if you can buy a company like that at a discount, it's a time to consider something like that. And finally, Lockheed Martin. Lockheed Martin is the world's largest defense company. They do a lot of work with the United States government now, right? Now, for some reason, Lockheed Martin is a little bit of a discount. So I like Lockheed Martin LMT between $300 and $350. And we're just to break into that territory right around the time of this video. They have a very healthy dividend. It's a little bit on the low side. It's between three and three and a half percent. But it's one of those companies that's been around for a long time. They're not going anywhere because they work with the US government. So if you can get them at a discount and they pay income over time and it possibly could go up in value, it's something to keep an eye on. So there you have it. That's our 10 passive income stocks that are in buy range right now. But here's a little secret that most of you probably don't know. There is a way to buy all stocks on a discount. It's a strategy called naked puts. And basically the way that it works is you can set a price range to buy a stock. So let's say you wanted to buy one of these stocks like Lockheed Martin for less than it is for sale right now. Well, you could put in an order to say I'll buy it at $300 instead of $350. I'll buy it at a discount. Well, you can get paid to make that agreement. It's this really cool way to ensure that you never overpay for a stock and you can actually generate passive income by doing it. It's a whole strategy on its own. It's one of my most popular videos. So click right here to watch this video and it'll show you the whole strategy. If you combine the strategy of buying passive income stocks with selling naked puts, the returns can be really exciting. Hey, one more disclaimer. I am long some of these stocks, which means I own a few of these stocks, so I'm totally biased. I do not have an unbiased opinion. Remember, I'm just some idiot on the Internet who doesn't know what he's talking about. I'm just an entrepreneur who likes to invest the profits into other sources of passive income. If you liked this video, make sure you show me the like by clicking the like and I'd love to help you on your journey as an entrepreneur. I help people build businesses and invest the profit. So if that's you, subscribe to this channel and I will see you on the next video. Thanks so much for watching.