Thanks for the discussion. I agree that the term "passive income" is a marketing buzzword. In reality making money on your own always involves time, effort, and knowledge. However, the concept of finding ways to replace your salary is not wrong.

Income from real estate, dividends, selling options, etc is far more 'passive' than say starting your own business, for example. But they all still take work, and you won't be successful if you think they will run themselves.

In terms of dividend investing, a high dividend yield could be an indication of a stock that is trading at a good value, but it is by no means a guarantee. The investor has to do their homework to understand why the yield is so high and if the yield will likely stay where it is or be cut. Also, if you are confident in your choices and investing for the long term, then a temporary price drop doesn't mean much.

Dividends can certainly be a part of any investor's income stream, but it is not guaranteed, so it must be used conservatively.

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