A dividend stock typically has millions of shares outstanding and the amount paid is very small.  The long term average yield of S&P 500 is 1.85%.  Top paying dividend paying stocks yield 3-4% whereas passive investments in multifamily deliver a preferred rate 6-8%.  The Pref alone in Multifamily yields triple the cash flow of an S&P 500 average stock.    

As sales professionals this is highly beneficial to us.  Your investment functions as a safety net during periods of employment risk.  We’ve all lived the life of budgets, KPIs and various corporate initiatives which impact our pay on a quarterly, monthly or annual basis.  It’s a fact of life that high performing Sales Professionals accept.  Imagine being able to weather these changes and not worry about if you can pay your monthly bills because you know you’ve got passive cash flow coming in from your commissions you earned 3 years ago?  

Quick illustration breaking it down:  

• You invest $100K at a 7% pref.  
• Year 1 = $100,000 *.07 = $7,000 /12 months = Monthly dividend of $583.  
• Year 2 = $100,000 *.07 = $7,000 /12 months = Monthly dividend of $583.  
• Year 3 = $100,000 *.07 = $7,000 /12 months = Monthly dividend of $583.  
• Year 4 = $100,000 *.07 = $7,000 /12 months = Monthly dividend of $583.  
• Year 5 = $100,000 *.07 = $7,000 /12 months = Monthly dividend of $583.  

At the end of the investment, you’ve made $35K in dividends alone.  That same S&P 500 stock at 1.85% would be $9,250.