How to Power Your Portfolio with Income-Generating Assets

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Contributor, Benzinga
December 27, 2022

How would you like to receive passive income without working additional hours? A portfolio filled with Income-generating assets can help you achieve that goal and lead to a smooth retirement. These investments provide compounding cash flow that can someday exceed your living expenses. Income portfolios let you benefit from cash-flow growth, reinvestments and appreciation. This article discusses how to fill your portfolio with income-producing assets that strengthen your finances.

What Are Income-Generating Assets?

Income-generating assets reward you for holding onto them. Some companies issue dividends to their shareholders, which you can reinvest into the company or use for expenses. These assets are critical for any retirement plan. Investors accumulate these assets, so their cash flow covers all of their expenses.

Why Should You Build a High-Yield Portfolio?

A high-yield portfolio is filled with income-producing assets. You earn more cash flow, which can help with retirement. These investments can also provide more stability than the stock market, and if you venture into alternative investments, you can even outperform the stock market. 

Increased stability becomes more important as investors get older. They don’t want to deal with dramatic stock market swings as the finish line approaches. Consistent cash flow that comes from reliable investments reduces stress and helps investors sleep at night. Most of these assets are boring by design, and that’s not a bad thing. You generate consistent cash flow and don’t have to refresh your portfolio every minute to see the latest price swings. Less time in your portfolio gives you more time to grow your career and focus on other areas of your life.

Examples of Income Producing Assets

Investors have many choices to generate income from their portfolios. Here are some of the investments you can use to accumulate passive cash flow.


Some stocks pay dividends to their investors. While most stocks distribute quarterly payouts, you can find stocks that pay their investors each month. Stocks are highly liquid and easy to enter, but most stocks move with the market. A bear market can drag stock prices, even if the assets are fundamentally sound. The crowds can create a roller coaster effect in the stock market that tempts investors to abandon fundamentals and invest with emotion. Having a long-term mentality and focusing on stocks with less volatility can help you navigate the ups and downs.


Bonds are less risky than stocks, especially Treasury Bills. Bonds provide a yield for holding onto them, and you can get higher payouts with corporate bonds. But you won’t get as much of a return for holding onto bonds. You could get a higher return than bonds if you stash money in an online bank with a high-yield savings account, but you could still get higher returns with other income-producing assets.

Real Estate

Real estate is a tangible asset that serves as a hedge against inflation. Rent payments arrive each month, and raising the rent each year will expand your profit margins — especially because a fixed-rate mortgage stays the same. You can venture into commercial properties and other property types, but a duplex or triplex is a great way to get started.


Real estate notes follow the banking model. You can invest in a real estate note for a homeowner who has fallen behind on mortgage payments. The note owner can renegotiate mortgage payments with the homeowner to ensure they repay the entire debt. These renegotiations provide monthly cash flow for the note investor and can yield generous returns. Note investors can help homeowners keep their properties, but if the homeowner falls behind on payments, you can acquire their house as collateral. This latter route can get messy, but note investors have several ways to prevent the worst-case scenario and collect monthly payments.

Private Equity 

Private equity trades off public markets. While it’s normally not accessible to retail investors, more investing platforms are making it easier to tap into private equity. Some of this equity pays off after years of appreciation, but other assets in this market provide distributions for their shareholders. 

4 Tips to Increase Your Monthly Portfolio Contribution

A high-income portfolio provides passive cash flow, but income-producing assets do not guarantee retirement. Any investors can acquire these assets, but you can only grow your portfolio to the degree of your monthly contributions and reinvestments. Reinvestments start small and grow over time, but they only become enough for you to retire if you contribute more money to your portfolio. Below are some quick tips to increase your monthly portfolio contributions so you can fast track your path to wealth.

Review Your Monthly Expenses

Every dollar you spend is another dollar that cannot go into your portfolio. While you have to spend money on food, housing and other necessities, some costs are not worth it. Your bank account and credit card statements provide clues for cutting your expenses. You can trim the subscription you no longer use and look for other opportunities to keep your costs low. If you have never analyzed your monthly expenses, this strategy can instantly open up more funding for your portfolio. But this strategy has diminishing returns. The more you stay on top of your expenses, the more difficult it becomes to save that extra dollar.

Grow Your Career

Making more money in the same amount of time makes it easier to power up your portfolio. Seeking new career opportunities and exploring side hustles can increase your monthly income. Younger investors typically have more time to grow their careers and explore new opportunities. You can trim your expenses, but you will eventually hit the ceiling. Career growth has far more potential, and if you are conscious of your expenses, you’re less likely to fall into the lifestyle inflation trap. 

Reinvest Every Dividend You Don’t Need

If you do not need dividend payments to cover necessities, you should reinvest them into your portfolio. Many companies let you automatically reinvest dividends, so you don’t have to monitor your portfolio every payday. Someday, you can live off your dividends, but until that time arrives, it’s best to reinvest them into income-generating assets.

Generate More Wealth with Income-Generating Investments

Portfolios take time to build, but that portfolio can someday cover your living expenses. Focusing on income-generating assets lets you capitalize on cash flow and lower volatility. Stocks and bonds can provide passive income, but stocks can feel like roller coasters while bonds produce low returns. Alternative investments have less volatility than the public market, generate higher returns and distribute cash to shareholders. 

Frequently Asked Questions


How do you grow your portfolio?


You can grow your portfolio by selecting assets that match your risk tolerance, reinvesting proceeds and increasing your monthly contribution.


What is a good income-generating asset?


Stocks and bonds are popular choices, but you can also find great income-generating assets through alternative investments. The best income-generating asset aligns with your risk tolerance.


How can you make $1,000 per month in passive income?


Making $1,000 per month would result in $12,000 per year. If you determine your portfolio’s yield, you can also determine how much money you need to earn $1,000 per month in passive income. If you want to earn $12,000 per year with a 4% yield, you would need a $300,000 portfolio.