i-14.12- What is Passive income (dividends)?

 Great question, Sarim! Let’s break it down in a simple and clear way so you can understand exactly what passive income (dividends) means — in English and Khmer.


💰 What is Passive Income (Dividends)?

🧠 English Explanation:

Passive income means money you earn without working actively every day. One common type is dividends — money paid to you just for owning stocks or ETFs.

✅ If you own a company’s stock, and that company makes a profit, it might pay you part of that profit every 3 months. That’s a dividend.

You don’t have to sell anything. The company just puts money into your account.


🗣️ Khmer Explanation:

Passive Income (ចំណូលអចិន្រ្តៃ្យ) មានន័យថា៖
ប្រាក់ចំណូលដែលអ្នករកបានដោយមិនចាំបាច់ធ្វើការពេញម៉ោងជារៀងរាល់ថ្ងៃ។
👉 វិធីមួយក្នុងចំណោមចំណូលនេះគឺ Dividends (ប្រាក់ចំណេញបែងចែក)

បើអ្នកកាន់ភាគហ៊ុនក្នុងក្រុមហ៊ុនណាមួយ ហើយក្រុមហ៊ុននោះរកបានចំណេញ អ្នកអាចទទួលបានប្រាក់ចំណេញជាដុល្លារ (dividends) រៀងរាល់ ៣ ខែ ឬ ៦ ខែ។

អ្នកមិនចាំបាច់លក់ភាគហ៊ុននោះឡើយ។ ក្រុមហ៊ុននឹងបញ្ជូនប្រាក់ទៅគណនីវិនិយោគរបស់អ្នក។


📘 Example in Real Life

Let’s say:

  • You buy 10 shares of a company like Coca-Cola (KO)
  • Coca-Cola pays a dividend of $0.46 per share every 3 months
  • You will get 10 × $0.46 = $4.60 every 3 months

➡️ That’s your passive income — even if you do nothing!


🧺 ETFs That Pay Dividends (Good for Passive Income)

Ticker

Name

Dividend Yield

VYMI

Vanguard International High Dividend Yield ETF

~4.5%

SCHD

Schwab U.S. Dividend Equity ETF

~3.7%

HDV

iShares Core High Dividend ETF

~4.1%

IDV

iShares International Select Dividend ETF

~6.0%

✅ These are great for monthly or quarterly income without needing to work.


🧠 Why Passive Income Is Important

Reason

Benefit

💵 Extra income

You earn money even when you're sleeping

👨‍👩‍👧‍👦 Freedom

Spend more time with family or on your business

📈 Reinvest

You can use dividends to buy more stocks or ETFs

🧓 Retirement

Passive income helps you retire early and safely


✅ Summary

Term

Meaning

Passive income

Money you earn with no active work

Dividends

Company profits shared with shareholders


Would you like me to:

  • Help you find dividend-paying stocks or ETFs on Schwab?
  • Create a $100/month passive income plan?

Just tell me what goal you want! 😊

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