How I’d obtain a passive income of $40,000 per year from buying dividend shares

Dividend shares do not only offer the chance to make a generous passive income right now. They also have the potential to deliver impressive total returns over the long run as a result of a lack of other income opportunities available to investors.

This could increase their popularity, and mean that they outperform the wider stock market in the coming years. They could even ultimately provide an annual income of $40,000 from a modest monthly investment that grows at a relatively fast pace in the coming years.

Passive income opportunities among dividend shares

Clearly, an investor who has a $1 million portfolio today could generate a passive income of $40,000 from buying a selection of dividend shares. However, those same stocks…