passive-income-books

Passive income is the holy grail of personal finance. It allows you to earn income while you sleep, travel, or pursue your hobbies. But where do you start? With countless investing strategies, it’s hard to know which path to take. That’s where the best passive income books come in.

The books below give guidance, inspiration, and advice. These pages can help you build wealth and achieve financial independence. In this article, you’ll find the top books to help you learn how to set up streams of passive income. Feel free to click on each book below for more details and reviews.

Passive Income Books for Dividend Investors

Opposed to rental income and many other sources, dividends are truly passive income. You don’t have to manage anything – or pay a property manager to do that for you. Instead, you simply can buy dividend stocks and collect a stream of income. With dividend stocks, the only action you have to take is placing a buy or sell order. That’s why I’ve compiled the best dividend passive income books below.

1. The Little Book of Big Dividends

by Charles B. Carlson

The Little Book of Big Dividends by Charles B. Carlson

This is a great passive investing book. It’s a guide that shows you how to build a dividend portfolio. The author, Carlson shows strategies for finding dividend stocks that offer high yields and lower risk. This insight can help you find stocks that payout steady passive income. This book is valuable for finding a reliable stream of income.

One benefit of this book is that its focus on useful and actionable advice. You find the “Dividend Yield Strategy.” This concept can help you find stocks with solid yields that meet other requirements as well. For companies to continue paying bigger passive income each year, they need a healthy balance sheet and earnings growth. By applying these tips, you can build an income portfolio to better manage income and risk.

2. Get Rich with Dividends

by Marc Lichtenfeld

Get Rich with Dividend by Marc Lichtenfeld

For one of the best passive income books, Get Rich with Dividends is a great read. It’s a useful guide to building wealth through dividends. In this book you’ll find Lichtenfeld’s “10-11-12 System.” This is a strategy to build up to 12% annual returns. This comes with a combo of growing dividends and reinvesting. The author explains how to compound your savings. Reinvesting your dividends can grow your portfolio exponentially. Although, this is best for long-term investors and building sustainable income.

Get Rich with Dividends is a useful, step-by-step guide. It shows readers how to find reliable companies that pay dividends. You’ll learn how to select stocks with steady dividend growth. By finding companies with a history of growing dividends, you can boost your passive income over time. To speed up the process, you’ll learn about dividend reinvestment plans (DRIPs). This investing technique can compound your wealth on autopilot.

3. Dividend Investing for Beginners

by G. R. Tiberius

Dividend Investing for Beginners by G. R. Tiberius

Dividend Investing for Beginners is great for new investors. This passive income book breaks down dividend investing to the basics. You’ll find an easy approach. This makes it accessible for beginners. The author, Tiberius, gives readers concepts such as how dividends work and why companies use them. You’ll also find many benefits of investing in dividend stocks. This book gives readers a solid base to start building a passive income portfolio.

For a better understanding, Tiberius shows readers through finding and analyzing dividend stocks. You find and learn metrics such as dividend yield, payout ratio, and various growth rates. Similar to the books above, this one also focuses on finding financially stable companies. For a reliable stream of passive income, it’s good to see companies with a long history of dividends. This can help you lower risk while maintaining good income levels. This book also covers the topic of reinvesting dividends. That’s a top strategy for growing your wealth over the long haul.

Passive Income Books for Value Investors

One key to passive income is sustainability. Even if a company pays a big dividend, it might not last. To better understand how to value companies and dividend safety, here are more great investing books to read.

4. The Intelligent Investor

by Benjamin Graham

The Intelligent Investor

The Intelligent Investor is one of the best stock market books ever written. It’s a must-read for all investors, income or otherwise. It’s a great read for learning how to invest in stocks. The author, Benjamin Graham, is considered the father of value investing. Overall, this book is a guide to investing in businesses. The investing principles you’ll find within these pages make it one of the best passive income books. That’s why Warren Buffett and other great investors call this one of the top investing books.

With this book, you’ll find the idea on margin of safety. It’s a key concept in The Intelligent Investor and it focuses on the market price of a stock and its intrinsic value. Graham shows readers why they should invest in stocks with a big margin of safety. They’re less likely to show big losses. With this approach in mind, you can better manage risk and grow your income. For beginners, as well as advanced investors, The Intelligent Investor is a top book to read. Feel free to click on the book above for more details and reviews.

5. Security Analysis

by Benjamin Graham and David Dodd

Security Analysis by Benjamin Graham and David Dodd

This book is a little more technical. Although, it’s still a top read for passive income investing. Security Analysis shows you how to analyze stocks and fixed income such as bonds. With deep insight from Benjamin Graham and David Dodd, this book gives readers a framework for picking better investments. This book can help you improve your investing skills. It’s packed with stock market insight.

By reading Security Analysis, you’ll find a key concept: intrinsic value of a stock. Said another way, this is the real value of a stock. And to determine it, you analyze the financials of the business, along with its future potential. The authors show why investors should look for undervalued stocks. If the market price of the stock is lower than the intrinsic value, it’s a good investment. These undervalued stocks can provide better capital gains and growing passive income. Armed with this investing approach, readers can sidestep mistakes.

6. The Essays of Warren Buffett: Lessons for Corporate America

edited by Lawrence Cunningham

The Essays of Warren Buffett by Lawrence Cunninghan

Warren Buffett is a treasure trove of investing wisdom. Many authors have written passive income books based on his strategies. However, it’s good to go straight to the source. This book is a collection of letters that Warren Buffett has written to shareholders. It’s filled with insights from one of the world’s best investors. You’ll find many topics on business, investing, and the stock market. This hands readers many useful lessons to improve their investing.

The Essays of Warren Buffett covers many topics and themes. And one recurring theme is a long-term approach. This is also a common topic among all these passive income books. Buffett shows why investors should make decisions for the long term. This helps avoid making bad short-term moves in the market. With these rules and wisdom, anyone can better manage risk and stay invested in passive income stocks. Similar to the other books, you’ll also find how to evaluate companies to invest in.

Reading Passive Income Books and Beyond

With these top passive income books, you can equip yourself with valuable investing knowledge. This can help you break free from the standard rat race. Building passive income takes time and effort, but the rewards are well worth it. By using the strategies and ideas from these books, your wealth should grow over time. However, it’s a continuous journey and for next steps, here are more book lists to consider…

  1. Top 6 Value Investing Books
  2. Fundamental Analysis Books
  3. Top 6 Investing Psychology Books

After going deep into the world of finance, I’ve found many people overlook the psychology side of investing. Feel free to check out that list of books and why it’s so important. And don’t forget to click on each of the passive income books above. You can see more details and reviews.