Passive Income Streams March 2020

Passive Income Streams March 2020: Navigating Through Uncertain Times

The month of March 2020 was marked by the global outbreak of the coronavirus pandemic, which has had a significant impact on personal finances, the economy, and our daily lives. In this article, we will discuss how passive income streams have been affected during these uncertain times and how individuals can navigate through them.

Passive Income Streams: An Overview
Passive income streams refer to sources of income that require minimal effort to maintain but continue to generate revenue over time. Some common examples include dividend-paying stocks, rental properties, and peer-to-peer lending platforms like Lending Loop. These income streams can provide financial stability and help individuals achieve their long-term financial goals.

Dividend Portfolios
Dividend-paying stocks have been a popular source of passive income for many investors. However, with the stock market experiencing significant volatility due to the pandemic, dividend payments have been affected. Many companies have reduced or suspended their dividend payments to conserve cash and weather the economic storm. For example, in March, the Canadian government announced a ban on stock buybacks and dividend increases for companies with significant tax support. This move was aimed at preserving cash for these companies to maintain operations and support their employees.

Private Mortgages
Private mortgages, which are loans made by individuals to other individuals or businesses, have also been impacted by the pandemic. With the uncertainty in the economy, borrowers may struggle to make their mortgage payments, leading to potential defaults. Lenders may need to adjust their investment strategies to account for this risk.

Rental Properties
Rental properties are another common source of passive income. However, the pandemic has led to job losses and financial instability for many tenants, making it challenging for landlords to collect rent on time. Some governments have implemented rent freezes or moratoriums to help tenants during these difficult times. Landlords may need to adjust their budgeting and cash flow projections to account for potential rent shortfalls.

Lending Loop
Peer-to-peer lending platforms like Lending Loop have also felt the impact of the pandemic. With