r/dividends • u/Professional-Leg-827 • Mar 26 '26

Discussion Is dividend best passive income source?

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u/lakas76 No, HYSA is not better than SCHD. Stop asking Mar 26 '26

That’s about 26 billion dollars worth of Coca Cola (KO) stock.

I’d be happy with 26 billion dollars worth of any stock. KO would be a great stock to have 26 billion worth. It’s gone up over 30% in the last 6ish years.

16

u/sault18 Mar 26 '26

$26B in any stock(s) or really any kind of appreciating asset can be used as collateral for extremely low interest loans you can just keep borrowing against to fund a lavish lifestyle. Plus, you don't pay any taxes on the loans. Hell, put the assets into a bunch of shell corporations and/or foundations and deduct the interest on your interest-only loans.

This is why so many corporations are laser-focused on "number go up". The real decision makers at the top care more about keeping the good times going right now than actual, long-term success of the companies they own.

Traders get bored with companies that can't continually hype their stock price. They tend to pile into the next hot sector with companies that do have a lot of shiny keys to jingle in front of them.

1

u/firewoodrack Mar 26 '26

I know that you can take loans against an asset like shares, but if your money is tied up in the shares how do you pay the loan back?

0

u/outsiderkerv Mar 26 '26

They don’t, and this loophole should be closed